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February 20, 2019
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payroll job costing and overtime

  • February 20, 2019
  • 1 reply
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Client is using job costing with employee's payroll;  The challenge is that any overtime the employee is entitled to falls into the last job that she posts.  She is using 2016 Desktop.  Would a more recent version be able to allocate the overtime over?  Or what are others doing to spread overtime across jobs.  

Best answer by qbteachmt

The issue is, if you Know you can assign that the OT is direct to any specific job, or if the Work Day just ran late.

 

For this: "The challenge is that any overtime the employee is entitled to falls into the last job that she posts."

 

Stop using a Multiplier item for OT. Set up the Half Rate as a separate Payroll Compensation item. Use it, like this:

 

Timesheet entry, Service item = Laborer, Payroll item = Hourly pay, 10 hours, Smith. Billable or not. Next line, for the same date, Service item = Laborer, OT Payroll item = set for half-rate Hourly pay, 2 hours, Smith. Billable or not. Then, Jones job, with or without OT as its own entry.

 

Now you see Smith: 10 hours at full rate + 2 hours at half-rate. That = 11 hours' of $, the same math as "8 + (2 x 1.5)."

 

And the reason I like to do this is not just Job Tracking, but also, my Worker Comp reporting wants only Base Rate for all hours. I exclude OT for WC, so that means I am tracking it as a Shift Differential concept.

1 reply

February 20, 2019

You can specify the Job for Overtime just like other earnings items.  You can also split the overtime just like you can other earnings items.  What challenge to you see in this?

qbteachmt
qbteachmtAnswer
February 20, 2019

The issue is, if you Know you can assign that the OT is direct to any specific job, or if the Work Day just ran late.

 

For this: "The challenge is that any overtime the employee is entitled to falls into the last job that she posts."

 

Stop using a Multiplier item for OT. Set up the Half Rate as a separate Payroll Compensation item. Use it, like this:

 

Timesheet entry, Service item = Laborer, Payroll item = Hourly pay, 10 hours, Smith. Billable or not. Next line, for the same date, Service item = Laborer, OT Payroll item = set for half-rate Hourly pay, 2 hours, Smith. Billable or not. Then, Jones job, with or without OT as its own entry.

 

Now you see Smith: 10 hours at full rate + 2 hours at half-rate. That = 11 hours' of $, the same math as "8 + (2 x 1.5)."

 

And the reason I like to do this is not just Job Tracking, but also, my Worker Comp reporting wants only Base Rate for all hours. I exclude OT for WC, so that means I am tracking it as a Shift Differential concept.

February 20, 2019

This won't work if you have any taxes based on hours and it'll make the pay stubs wrong - as they won't indicate the actual number of hours worked.