Overtime - Fluctuating workweeks
Fluctuating workweek method of computing overtime
Has anyone set up a fluctuating workweek for employee population? The intent is to pay a non-exempt employee a weekly salary, then factoring the hourly and overtime rate based on hours worked...
week 1 $1000 Salary 35 hours = $28.57/hr = gross pay $1000
week 2 $1000 Salary 40 hours = $25.00/hr = gross pay $1000
week 3 $1000 Salary 45 hours = $22.22/hr = gross pay $1000 + overtime $22.22*.5=$11.11 * 5 hours = $55.55, total gross $1055.55
I originally posted this on the Compensation forum this spring and haven't had any responses, so I thought I'd add this to the payroll area since it involves payroll calculations.