Under the federal Fair Labor Standards Act (FLSA), employees must be paid at least the minimum wage for each hour worked. In some states, agricultural work requires overtime pay for all hours worked in excess of 40 in a work week.
Minimum Wage Adjustment for piece work
To ensure that piece-rate employees are earning at least the minimum wage, the total piece-rate compensation for each employee must be divided by the number of hours worked during the pay period. This can be averaged with hourly wages if the employee also performs hourly work during the same pay period. If the resulting earnings-per-hour is less than the applicable minimum wage, the employer must pay an additional Minimum Wage Adjustment (Makeup Pay) to make up the difference.
Since an employee's productivity and work hours can fluctuate, the Minimum Wage Adjustment calculation must be done for the entire pay period and not just for a single day.
When Time Portal generates Payroll Exports, it checks that none of the employee's work has been included in another Payroll Export for the same period since this could result in an incorrect Minimum Wage Adjustment. An error message will be displayed and either:
1. The previous payroll should be canceled and re-run to include all information within the same batch.
2. The setting "Allow multiple payrolls in same pay period" on the My Company screen can be enabled to disable the validation.
Warning: If multiple payrolls (for each employee) are allowed during the same pay period, Time Portal will not be able to properly calculate Minimum Wage Adjustment for piece work. This setting can be used if the Payroll Software is responsible for calculating Minimum Wage Adjustment and with the understanding that Time Portal's Makeup and Gross Pay may therefore not match that of the Payroll Software.
Weekly overtime pay
In some states, agricultural work requires weekly overtime pay. Time Portal's Wage Rules can be used to configure the threshold (40-hours) and pay rate for weekly overtime pay but require that weekly overtime pay is calculated for the entire pay period.
When Time Portal generates Payroll Exports, it checks that none of the employee's work has been included in another Payroll Export for the same period since this could result in an incorrect weekly overtime pay calculation. An error message will be displayed and either:
1. The previous payroll should be canceled and re-run to include all information within the same batch.
2. The setting "Allow multiple payrolls in same pay period" on the My Company screen can be enabled to disable the validation.
Warning: If multiple payrolls (for each employee) are allowed during the same pay period, Time Portal will not be able to properly calculate weekly overtime pay. This setting can be used if the Payroll Software is responsible for calculating Minimum Wage Adjustment and with the understanding that Time Portal's Makeup and Gross Pay may therefore not match that of the Payroll Software.
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