USA Calculate Weekly Pay Rate Rule

Before You Begin: This functionality is applicable for US employees only.

Important: If you don’t add a qualifier to this rule, then the earning statement shows the weekly rates for all employees. See Qualifier Settings.

To support compliance requirements for Oregon State, you can use the USA Calculate Weekly Pay Rate Rule to generate supplemental weekly rate information on employee earning statements. When you configure this rule in an employee's payroll policy, the online earning statement includes a supplemental section called Weekly Rate of Pay, as shown in the following screenshot:

Moreover, the printed US back office earning statement and the onsite check earning statement includes the weekly rates in the Other Payroll Information section, as shown in the following screenshot. The statement doesn’t show the date range of weekly rates:

In the Other Payroll Information section, weekly rates of pay are sixth in the priority sequence, which is as follows (note that this sequence isn’t editable):

1. Oregon BIN (Applicable for the state of Oregon only).
2. Time collection period (Applicable for US employees only. See Include Time Collection Period on Earning Statement.
3. Org assignment
4. Entitlements
5. Groupings
6. Weekly Rates of Pay

Notes about this functionality:

• Calculation and display of weekly rate of pay is specific to each check and legal entity, as opposed to being pay run specific. For example, if an employee has regular pay, and you also issue an onsite check, each statement will contain separate weekly rates.
• If there is no business date entered for an entry, then the weekly date range for the rate appears on the statement as the full pay period instead. In this example, the rate has a start and end date that includes the entire two weeks of the biweekly pay period:
• 
• When this feature is configured, the application also displays a warning message in the Payroll module to indicate when one or more entries is missing a business date.
• This section is supported for any pay frequency. For semi-monthly and monthly frequencies, this section only includes full weeks, while fractions of weeks where the employee worked aren’t included. For example, if a semi-monthly pay period includes only three days of a week, this week isn’t included in the statement.
• This section doesn’t include rates for advance pay or retroactive earnings. It’s for displaying rates for earnings from the current pay run only.

More Than One Regular Earning

If there are regular earnings with different rates, the application calculates the rate for each week based on the following formula:

Weekly Rate = Regular Weekly Earning Amount / Regular Weekly Hours

For example, in the week of 5/14/2017 to 5/20/2017, an employee has the following two earnings:

Example of regular earnings with multiple rates

Earning Code	Hours	Rate	Earnings
Regular	24	20	480
Regular Onsite	16	30	480

The application displays an average rate of $24 per hour based on the following calculation:

24 = 960 / 40

FLSA Earnings

If there are earnings for a Fair Labor Standards Act (FLSA) adjustment in the current pay run, Dayforce includes the FLSA adjustment rate in the regular rate, and includes an OT premium rate for the weeks where there was overtime.

For example, say that for the biweekly pay period of 5/7/2017 to 5/20/2017, an employee worked the following hours:

• Week of 5/7/2017 to 5/13/2017:
  • 40 regular hours
  • 4 overtime hours
• Week of 5/14/2017 to 5/20/2017:
  • 40 regular hours
  • 4 overtime hours

In this example, the regular hours for both weeks were paid at a rate of $20 per hour.

Moreover, say that in this pay period, you paid the employee an FLSA adjustable bonus of $1,000 with an FLSA start date of 5/7/2017 and end date of 5/20/2017 (that is, a start and end date that span this pay period only).

The application uses the following formula to calculate the FLSA adjustable rate:

FLSA Adjustable Rate = FLSA Adjustable Earning Amount / Total Hours Worked in FLSA Period

Because the employee in this example worked 80 regular hours and 8 overtime hours in the FLSA adjustable period, and received a $1,000 bonus, the calculation is as follows:

11.3636 = 1000 / 88

Next, the application uses the following formula to calculate the regular rate for each week:

Regular Rate = Regular Rate + FLSA Adjustable Rate

The employee in this example worked overtime in both weeks, and was paid the same regular rate of $20 per hour in each week. As such, the calculation for both weeks is as follows:

31.3636 = 20 + 11.3636

Lastly, the application uses the following formula to calculate the overtime premium rate for each week that had overtime:

Overtime Premium Rate = (Regular Rate * (Overtime Multiplier - 1)) + (FLSA Adjustable Rate * (Overtime Multiplier - 1))

Continuing this example, if the multiplier for the FLSA overtime adjustment calculation was 1.5, the calculation for both weeks is as follows:

15.6818 = (20 * (1.5 - 1)) + (11.3636 * (1.5 - 1))

Based on these calculations, the regular and OT premium rates are displayed on the earning statement for this employee as follows:

Note: Seen in this example, the regular and OT premium rates for each week are rounded to four decimal places.

USA Calculate Weekly Pay Rate Rule Parameters

Before You Begin: For more information on adding rules to payroll policies, see Create Time-Driven Earning Definitions.

Eligible regular work earnings

Select one or more regular earnings that are counted in the Weekly Rate of Pay section of the earning statement. As a best practice, you should only include earnings that represent regular time worked (for example, not overtime).

For the rule to run, you must select at least one earning from the Eligible regular work earnings drop-down list, otherwise the application generates an error message in the Payroll module when you calculate pay.

FLSA Bonus earnings

Select from a list of FLSA adjustable earnings to match what you have configured for the FLSA Overtime Adjustment rule of the pay policy or the Payroll Overtime Adjustment rule of the payroll policy.

FLSA OT Adjustment earnings

Select the premium earning code that is used to pay out the FLSA adjustment. It should match what you have configured for the FLSA Overtime Adjustment rule of the pay policy or the Payroll Overtime Adjustment rule of the payroll policy.

FLSA Work Earnings

Select the earning code that the application measures to calculate the FLSA overtime adjustment (for example, the Overtime earning code). You can leave this setting cleared if the above-mentioned rules are configured in the Payroll or WFM modules. However, if at least one of these rules isn’t configured, then you need to define this setting for the weekly rates of pay to include the FLSA rates.

FLSA Overtime rate multiplier

Enter the rate multiplier of the FLSA rule that you have configured. It should match what you have configured for the FLSA Overtime Adjustment rule of the pay policy or the Payroll Overtime Adjustment rule of the payroll policy. If you leave this setting cleared, the application uses a default multiplier of 1.5.

Qualifier Settings

To restrict the USA Calculate Weekly Pay Rate Rule to employees in certain US states only, add an Employee Qualifier to the rule and define the Eligible Work State/Province or Ineligible Work State/Province setting.

For example, you can add an employee qualifier to the USA Calculate Weekly Pay Rate Rule and select the state of Oregon in the Eligible Work State/Province drop-down list. If you do this, the application will only display the supplemental Weekly Rate of Pay section on earning statements for employees who work in Oregon. You can also configure the qualifier to only include hourly employees in Oregon.

Additional information is available in Employee Qualifier.