Overview
If a user works more than one position with different pay rates in the work week, When I Work calculates a user’s overtime using the weighted average wages of the positions worked.
Considerations
- Weighted average overtime is currently only supported on weekly or every two week pay periods.
- Weighted average overtime is only calculated on the pay period exports.
Weighted average overtime calculation
Calculate weighted average overtime by following these steps:
- Calculate the ratio of hours worked across all positions worked. Divide the hours worked in a certain position by the total worked hours.
- Find the number of overtime hours attributable to each position. Take the total number of hours worked in the week and subtract by the weekly overtime threshold. Then multiply by the ratio of hours worked for that position.
- Find the regular worked hours for each position. Subtract the total hours worked in a position from the number of overtime hours that are attributable to that position.
- Calculate the regular pay for each position by multiplying the regular hours by the the position’s wage rate. Then calculate overtime hours for each position by multiplying the overtime hours by the positions wage rate multiplied 1.5
- Calculate the attributed pay. Add together the regular and overtime pay for each position.
Example calculation
In this example:
- The user works two different positions during the week:
- Roaster at $20/hour for 8 hours.
- Barista at $10/ hour for 40 hours.
- The account’s weekly overtime threshold is set to 40 hours/week.
- Calculate the ratio of hours worked:
Position Roaster Calculation 8 / (8 + 40) = 16.67 % Position Barista Calculation 40 / (8 + 40) = 83.33% Position Calculation Roaster 8 / (8 + 40) = 16.67 % Barista 40 / (8 + 40) = 83.33% - Calculate the number of overtime hours for each position:
Position Roaster Calculation (48 – 40) x 16.67% = 1.333333333 Position Barista Calculation (48-40) x 83.33% = 6.666666666 Position Calculation Roaster (48 – 40) x 16.67% = 1.333333333 Barista (48-40) x 83.33% = 6.666666666 - Calculate the regular hours for each position:
Position Roaster Calculation 8 – 1.333333333 = 6.666666667 Position Barista Calculation 40 – 6.666666667 = 33.333333333 Position Calculation Roaster 8 – 1.333333333 = 6.666666667 Barista 40 – 6.666666667 = 33.333333333 - Calculate the regular and overtime pay for each position:
Position Roaster Wage 20 Regular pay calculation 20 x 6.666666667 = $133.3333 Overtime pay calculation 20 x 1.333333333 x 1.5 = $40.00 Position Barista Wage 10 Regular pay calculation 10 x 33.333333333 = $333.3333 Overtime pay calculation 10 x 6.666666667 x 1.5 = $100.00 Position Wage Regular pay calculation Overtime pay calculation Roaster 20 20 x 6.666666667 = $133.3333 20 x 1.333333333 x 1.5 = $40.00 Barista 10 10 x 33.333333333 = $333.3333 10 x 6.666666667 x 1.5 = $100.00 - Find the total attributed pay: (133.3333 + 333.3333) + (40.00 + 100.00) = $606.6667 The Adjusted Hourly Rates for the example user are as follows:
Adjusted Hourly Rate 606.6667 / 48 = $12.6389 Adjusted Overtime Hourly Rate 140 / 8 = $17.50 Adjusted Hourly Rate 606.6667 / 48 = $12.6389 Adjusted Overtime Hourly Rate 140 / 8 = $17.50