Date Issued: 01/03
Date Revised: (04/09)
Payment plans for non-exempt employees occurring outside of the biweekly payroll schedule are to be reviewed by HR Compensation to determine if the payment should be included in “regular pay” or should be excluded from “regular pay.” If the payment is excluded from “regular pay,” it is not subject to overtime pay.
If the payment is determined to be “regular pay,” the payment must be based on one of the following criteria:
The calculation for the overtime premium is based on pay periods ending during the specified period. The flat amount is divided by the total hours worked for the period and a rate of pay is determined. One-half of the rate of pay is multiplied by the hours of overtime worked during the specified period.
Payments determined to be “regular pay” are taxed as regular earnings.
If the payment is determined to be excluded from “regular pay,” the payments will be processed and taxed as supplemental earnings.