Overtime on a prevailing wage job
Why overtime is the most common reason a certified payroll comes back, worked on the free calculator: time and a half on the basic rate only, fringe on every hour, the two mistakes reviewers see with their dollar cost, and why the 40 hours count every job the worker did that week.
2:03 · Narrated, with captions
Transcript
Overtime is the most common reason a certified payroll comes back.
Not because it's hard.
Because the wage has two parts, and only one of them gets multiplied.
Two minutes, and you'll never get it wrong.
The wage determination gives you a basic hourly rate, and a fringe rate.
This worker did forty-four hours.
Overtime starts after forty in the week.
Four hours, and they land on Friday, because that's where the forty-first hour fell.
Time and a half applies to the BASIC rate only.
The fringe does NOT get multiplied.
So an overtime hour paid in cash is eighty-one sixty-three.
The gross for the project comes out to two thousand, seven hundred forty-eight fifty.
That's the number for column 7A.
Two ways this goes wrong.
First, multiplying the whole thing.
One and a half times sixty fifty-five, ninety eighty-three an hour.
Second, and worse: paying fringe on the first forty hours only.
Those are back wages, and the payroll comes back for a revision.
One more thing people miss.
The forty hours count EVERY job the worker did that week, not just this one.
Sixteen hours somewhere else on Monday and Tuesday, and overtime on this project starts Wednesday.
If the fringe goes into a plan instead of the paycheck, same rule.
The credit rides along on every hour, it just lands in column 6B instead of the gross.
Time and a half on the basic rate.
Fringe on every hour.
The forty counts all jobs.
The calculator is free at certified hours dot com, and the payroll editor does this split for you as you type.