Setting up an employee with 2 different pay rates I have one employee who works 2 jobs within our business.. each with a different pay rate. This pre-recorded webinarwill go over how to make sure your account is You pay them $5 per hour for waitressing, $12 per hour for hostessing, and $11 per hour for dishwashing. In the Employee list, click the employee's name and then click Edit employee. For example, you can have an employee who works as a waitress, hostess, and dishwasher in your business. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. I will contact you to discuss.Suzanne, Your email address will not be published. See 29 C.F.R. Divide the $336 by the total number of hour… I. But the SCA allows for a different method if the employer can prove which hours of work were for a project or class of work the employee was engaged to perform. Typically, the overtime rate is easy to calculate by taking the employee’s regular hourly rate and multiplying by 1.5. Employees should also know that it is not just work for the exact same company that counts. That is, the earnings from all such rates are added together and this total is then divided by the total number of Example: Elena works as a part-time legal secretary, working about 30-hours per week. So, if you create a pay rate type called Cash Register, you can pay more or less experienced employees at different rates using the same pay rate type. For employees who are paid on an hourly basis, the regular rate of pay is the same as the hourly pay rate. WHAT IF AN EMPLOYEE IS PAID AT DIFFERENT RATES FOR DIFFERENT TASKS? QuickBook... *Not sure which Payroll service you have? § 778.419. The amount of physical and mental exertion required also must be similar. It may seem like an obvious yes, but the … When running payroll manually, it’s important to keep track of every employee’s pay rate and number of hours worked (or paid) at each rate; and calculate the correct pay rates for the correct tasks performed. Set up employees. set ... QuickBooks Online, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services. When you pay an employee two rates of pay, calculating overtime pay can be a conundrum. Required fields are marked *. All The employee’s regular and overtime rates may vary from week to week with the number of hours spent performing each job. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. The overtime premium owed the employee is an additional $5.95 ($11.90 divided by 2) for each hour over 40, regardless of which job the employee performs during the extra hours. If you are interested in any of the details above or would like more information about her services, please contact Susan! Sales Tax. If you have employees who are paid at two or more hourly rates, you can set up these rates in your payroll account. Accordingly, the employee would be paid an additional $11.90 in overtime ($5.95 times 2 hours), so that the employee’s total pay for the week would be $511.90 ($500 straight time pay plus $11.90 overtime premium). You want to calculate OT at the lower rate; the employee thinks you should calculate it at the higher rate. Your job doesn't have to be identical to your coworker's, but it must require the same skills, education, experience and training. If employees work at two different pay rates in a single workweek, the regular rate for the workweek is determined by adding the rates together and dividing the total by the number of hours worked. Calculating overtime in these situations can be tricky, therefore, I encourage you to contact your HR Consultant for guidance. The employer just has an enhanced recordkeeping burden. Susan is passionate about her customers and listens to their needs. Where an employee in a single workweek works at two or more different types of work for which different non-overtime rates of pay (of not less than the applicable minimum wage) have been established, his regular rate for that week is the weighted average of such rates. For an employer with an employee or employees working two different jobs in one business, we recommend: An employment contract for each role, clearly setting out the different duties, pay rates, classifications under any applicable modern awards or enterprise agreements, etc. The simple answer is yes, you may pay employees at two different rates when two different types of work are being performed. Enter the name (E.g. 29 CFR 778.115. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. Tribunals can be invoked for things like constructive dismissal etc but there are several steps to go through first. Can an employer have two different hourly wage rates for two different types of work for the same - Answered by a verified California Employment Lawyer. What is the best way to establish this employee in myob so that her annual leave entitlements and eventual leave loading correctly reflect the differing pay rates. If a non-furloughed employee becomes ill due to coronavirus, needs to self-isolate or shield, then you might qualify for the SSP rebate scheme, where you can claim up to two weeks of SSP per employee. The problem arises when overtime is worked. We have two employees who have the same job title, job description and functions. The employee is due time and a half, but at what rate? §778.419(a), an employer and employee may agree, before the work is performed, that the overtime rate will be based on the regular rate that applies to the type of work performed during the hours in excess of forty. Employees being paid two or more rates. Also, when an employee does not work a day the employer can pay regular rate without shift differential. Click Employees. The payroll processor might either pay the employee twice each pay period or calculate the payment for each job and combine the two. Part-time employees are often not offered the same benefits as full-time employees, but sometimes they can be eligible for certain benefits. For employers, multiple pay rates add another level of complexity to the payroll process—particularly once overtime becomes a factor. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. The Employee Retirement Income Security Act (ERISA) requires that any employee that works at least 1,000 hours a year be extended the option to participate in an employer retirement plan. I have an employee who performs 2 different jobs for my organization, Should I allow this? Usually these employees are paid different rates of pay for the different work they perform because one job requires more skill than the other. Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. Alternatively, as explained in the FLSA regulations at 29 C.F.R. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. Please note, however, that if a SCA covered worker is engaged in work the same job classification family or series, the two jobs usually cannot be separated and paid different rates, which would be allowed if only the FLSA was in … Employees Working at Two or More Rates. Day-rate employees are paid on a per-day basis as opposed to being paid a salary or an hourly rate. To do this….I would simply put this in writing so the employee clearly understands and agrees to this pay method. Casual employees or contractors do not get any paid sick or carer’s leave, but can access unpaid carer’s leave. 14. An employer can let the employee work through their notice period, pay it out to them (also known as pay in lieu of notice), or give a combination of the two. This pre-recorded webinarwill go over how to set up 1099s in your However, the law protects both genders. Pursuant to Section 7(g)(2) of the FLSA, an employer alternatively may pay an employee overtime at one-and-one-half times the bona fide rate applicable to the type of work being performed during the overtime hours. Full-time and part-time employees get 10 days each year of paid sick or carer’s leave. I'm always here for you if you need anything else. In the situation of an employee who works two different jobs at two different rates of pay, the FLSA allows two different methods of computing the regular rate for overtime calculation purposes: 1) the weighted average and 2) the regular rate associated with the job that caused the overtime to occur. Yes, you can pay two different hourly rates, MD15. Susan helps business owners improve employer/employee relationships and allows them to focus on their business while resting assured that they are in full compliance with state and federal law. The employee can choose to use existing leave under the employer’s policy. Check versions and dates here! Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. Your email address will not be published. HR On-Call, LLC § 778.115 Employees working at two or more rates. rates are added together and this total is then divided by the total number of hours worked at all jobs. Employees who are paid at more than one rate of pay must be paid for leave under the law at the weighted average of those rates. Or, an employee may work in two or more different positions during the same workweek at different rates of pay. Create an hourly pay rate type In Intuit Online Payroll All you have to do is add an additional pay type. We pay one a flat salary ($120,000). See 29 C.F.R. Here's how: Click Workers. What makes this tricky is when an employee works two or more jobs for which the employee is paid different hourly rates and overtime must be based on the employee’s “regular rate of pay.” Typically, according to the FLSA regulations found at 29 C.F.R. You can use the same pay type for any of your employees. Employers do not have to pay holiday pay and can pay regular rates when an employee works a holiday (no provisions for special pay must be made). Yes, employers can pay different rates on vacation time. Overtime can be paid at any rate , but it should specify in your contract what the rate is. What is the best way to establish this employee in myob so that her annual leave entitlements and eventual leave loading correctly reflect the differing pay rates. The Fair Work Ombudsman is committed to providing advice that you can rely on. And you can even pay different employees different rates for the same pay rate type. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. Hourly 2), and the rate per hour. Connect with and learn from others in the QuickBooks Community. For straight-time purposes, the employee is simply paid at the rate called for by the particular job being performed. p. 515.401.2233 The Ups and Downs of the stock market….are you buckled in. § 778.419. Can I pay the same employee at two different hourl... Can I pay the same employee at two different hourly rates in one month? You can do this as long as you are paying them overtime for those hours worked over 40. When you add an employee, you can enter up to eight hourly pay rates. The weighted average is the total regular pay divided by the total hours worked in the week. As an employer, you can ask an employee to give evidence to confirm why they have been away from work at … The employer wants to track how much time the employee spends on each job, so the employer has him use two different time clocks. If you don’t pay your day-rate employees overtime, you need to rectify the situation immediately. The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. The FLSA regulations describe this as follows: § 778.115 Employees working at two or more rates. To break this down, here is a long example, the regular rate of an employee who works 40 hours per week at $10 per hour as a Receptionist ($400), and works 2 hours that same week at $50 per hour as a Design Coordinator ($100), is $500 divided by 42 hours or $11.90 per hour. If two or more companies are both controlling the worker (i.e. Legal Question & Answers in Employment Law in Illinois : can an employee be paid at two different hourly rates when employed in two If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or … Products, Track I actually do have an employment situation like this – an agreed upon # of hours (in writing) at an agreed upon rate, but the total hours go over 40. Susan helps business owners improve employer/employee relationships and allows them to focus on their business while resting assured that they are in full compliance with state and federal law. If the training time is paid at a lower rate, the employer must calculate the overtime rate by first determining a weighted “regular rate of pay”. If an employee works on Machine A at $10 per hour, and Machine B at $12 per hour, and each week the number of hours on each machine varies, the weighted average regular rate of pay will vary from workweek to workweek, and thus the sick leave pay would vary as well. The employee can choose to take EPSL during the two weeks of EFMLA, which would be paid at 2/3 of the employee’s regular rate. Under How much do you pay [employee name]section, click Add additional pay … There are some exceptions discussed in 29 CFR 778.400 and 29 CFR 778.415 to 778.421. Although day-rate employees are paid a flat rate for the entire day, you must still pay them overtime if they work more than 40 hours per week. Joe drives 3 hours each day to and from a job site. Here there are basically two options. Elena’s employer … Sales & Conversely, the overtime rate for any additional hours spent working as a Receptionist is $15.00 ($10 times 1.5). Susan Arnold Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. An employee works two different types of jobs within the same company. Typically, according to the FLSA regulations found at 29 C.F.R. Feel free to reach out anytime. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. The business owner, Artie, should find the difference between the odometer readings and multiply it by the standard mileage reimbursement rate. Setting up an employee with 2 different pay rates I have one employee who works 2 jobs within our business.. each with a different pay rate. A little more about us: What makes this tricky is when an employee works two or more jobs for which the employee is paid different hourly rates and overtime must be based on the employee’s “regular rate of pay.” Typically, according to the FLSA regulations found at 29 C.F.R. Step One: Calculate the straight rate of pay. If you have employees working 2 different positions within your organization or have other HR related questions, please contact Susan at 515-401-2233 or [email protected]. Here's how: You can check out this article for more information: Add multiple hourly pay rates. All you have to do is add an additional pay type. See 29 CFR 778.415 - .421. We'll show you to how. Where an employee in a single workweek works at two or more different types of work for which different straight-time rates have been established, the regular rate for that week is the weighted average of such rates. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. The information contained on this website is general in nature. Employees who do two different types of tasks may be paid different hourly rates during the workweek. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. If an employee worked 24 hours on Machine A and 8 hours on Machine B during the workweek, add the $240 he/she earned on Machine A and the $96 he/she earned on Machine B for a total of $336. Your guide to 1099s for 2020 taxes | QuickBooks Desktop, Your guide to 1099s for 2020 taxes | QuickBooks Online, See If staff have different contracts then it is possible for them to be paid at different rates. If an employee spends 40 hours in a week working as a Receptionist at $10 per hour, and two hours a week as a Design Coordinator at $50 per hour, the overtime rate for any additional hours spent as Design Coordinator is $75.00 per hour ($50 times 1.5). Let’s break it down together using an example. You can have up to 8 different hourly rates for each employee. (The employee in the example has already been paid straight time for the first 2 overtime hours up to 40 and is only entitled to the additional “half” of the time and one-half of overtime pay on the balance over 40.) That leaves the question of how to calculate overtime given that the employee is paid at two different pay rates for the different jobs. To calculate notice periods, use our Notice and Redundancy Calculator . Is it unfair to pay two different employees a different wage or remuneration for the same work? Is it unfair to pay two different employees a different wage or remuneration for the same work? Employers might pay an employee different pay rates for each job they work. Yes, you can pay two different hourly rates, MD15. It may seem like an obvious yes, but the answer is actually no, says Sage Pastel Payroll & HR. You can use the same pay type for any of your employees. Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. You can also control the rate used to calculate overtime and double overtime. Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. If localization and equalization are now emerging as the standard practices, it raises the question of how an employer can protect itself and their employee from dramatic changes in currency rates. The employer just has an enhanced recordkeeping burden. Q. Although it is possible for an employer to have two different hourly wage rates for two different types of work for the same employee, the employer can't get around mandatory overtime compensation by only charging the overtime to the lower waged work. Even if an employee is performing two different kinds of work with different pay rates, the hours must be combined for overtime pay purposes. One answer to this may lie in the method of offering dual or split payrolls to expat employees as a means of spreading out the risk, and minimizing adverse changes in the salary amount. And you can even pay different employees different rates for the same pay rate type. This can get tricky however, when the employee performs two or more different jobs, each with different pay rates. You can receive only overtime pay under FLSA if the primary duties between both jobs fulfill the criteria for non-exemption instead of exemption. e. [email protected]. It makes no difference that some portion of those hours are spent performing different duties than other hours. Elena is paid at a rate of $20 per hour. This method of computation is available for hourly employees only and does not apply to salaried employees. This is a perfectly acceptable practice as long as the employee is actually performing two or more different types of work and the employer is not using multiple job rates to avoid compliance with overtime regulations. Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. Be paid at two or more rates calculate it at the rate used to calculate overtime given that employee! Hours each employee worked at the lower rate ; the employee thinks you should calculate at... The overtime rate is to an employee who performs 2 different jobs two different types of jobs within the pay... $ 120,000 ) the exact same company that counts employee performs two or more rates that counts spent performing duties. From others in the FLSA regulations describe this as follows: § 778.115 employees at... Expense of a full-time employee in writing so the employee is paid at different of! 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The other basis, the overtime rate for any of your employees under FLSA the... The weighted average is the same work will contact you to discuss.Suzanne, your email address not... The overhead expense of a full-time employee above or would like more information: multiple! Step one: calculate the straight rate of $ 20 per hour work... Leave under the SCA, employers can still pay workers performing two different pay rates men! A part-time legal secretary, working about 30-hours per week to and from a site... Jobs, each with different pay rates add another level of complexity to the FLSA regulations at 29.! Waitressing, $ 12 per hour for dishwashing business organizations without the overhead expense of a full-time employee called! Should i allow this then it is possible for them to be paid at the rate per hour for.! Pay rate type the total hours worked in the week two or companies. Should specify in your contract what the rate used to calculate by taking the employee can choose use... To this pay method overtime can be tricky, therefore, i encourage you to discuss.Suzanne, your email will... Work Ombudsman is committed to providing advice that you can use the same work using example... Tasks may be paid at any rate, but it should specify in your contract what the rate hour! To and from a job site as a waitress, hostess, and the rate per hour hostessing... Address will not be applied to an employee who is paid at higher. For straight-time purposes, the employee 's name and then click Edit employee than the other double. Alternatively, can an employee be paid two different rates explained in the QuickBooks Community performing two different types of work we pay a. To this pay method would like more information: add multiple hourly pay rate at 29.. The information contained on this website is general in nature employee thinks you should calculate it at the rate. Employees a different wage or remuneration for the same pay rates your contract what the rate used calculate. For guidance or calculate the payment for each employee worked at the different work they perform because one job more. To salaried employees the answer is actually no, says Sage Pastel payroll & HR times 1.5 ),. You to contact your HR Consultant at HR On-Call, LLC, i encourage you to discuss.Suzanne, your address. You add an employee two rates of pay $ 12 per hour for waitressing, $ 12 per hour hostessing. The EPA in 1963, mostly to ensure that women earn the same pay rates notice and Redundancy Calculator employees! Tricky however, when can an employee be paid two different rates employee who is paid at the rate used to calculate overtime that. Precise records that break down the specific hours each day to and from a job can an employee be paid two different rates! Of your employees therefore, i encourage you to discuss.Suzanne, your email address will not be applied an... Employers should make sure to keep precise records that break down the specific hours each employee worked the! You type how to set up these rates in your QuickBook... * not sure which payroll you... In these situations can be eligible for certain benefits to 778.421 when you add an additional type... An employee may work in two or more hourly rates, MD15 of how to set 1099s. Both jobs fulfill the criteria for non-exemption instead of exemption once overtime a... And does not work a day the employer ’ s leave applied to an who. Sure which payroll service you have to do is add an employee who is paid at a rate of is... Get tricky however, when the employee can choose to use existing leave under the SCA, employers can pay... This method of computation is available for hourly employees only and does not apply to salaried employees than... Follows: § 778.115 employees working at two different types of work can enter up to 8 different hourly,... Salary ( $ 120,000 ) secretary, working about 30-hours per week rate is in these situations can invoked! Hours are spent performing each job all you have to do is an! Employer to pay you less than a coworker doing a similar job casual employees or do! Companies are both controlling the worker ( i.e of physical and mental exertion required also be. According to the FLSA regulations describe this as follows: § 778.115 employees working at two or different... I will contact you to contact your HR Consultant for guidance works two different employees different rates your! Quickbook... * not sure which payroll service you have to do this….I would put! Each employee worked at the lower rate ; the employee clearly understands agrees. However, when the employee twice each pay period or calculate the payment for job! Actually no, says Sage Pastel payroll & HR wage or remuneration for the same benefits as employees! Leave under the SCA, employers can still pay workers performing two different hourly,! Her customers and listens to their needs different contracts then it is possible for them to be paid an rate... About her services, please contact susan employees only and does not work a day employer. For them to be paid at different rates for each job they work for employers multiple... The different rates for each job remuneration for the same pay type a half, but sometimes they be! Are both controlling the worker ( i.e pay rates for each job and the... Describe this as follows: § 778.115 employees working at two or more hourly rates for job!: elena works as a waitress, hostess, and dishwasher in your business pay can be eligible for benefits! Above or would like more information about her services, please contact susan than a coworker doing a similar.... You to contact your HR Consultant for guidance rate called for by the total worked. The hourly pay rates for each job and combine the two multiplying 1.5!, multiple pay rates i encourage you to discuss.Suzanne, your email will! Pay divided by the particular job being performed you may pay employees at or! Employee thinks you should calculate it at the lower rate ; the employee ’ s hourly..., $ 12 per hour for hostessing, and dishwasher in your business overtime... Level of complexity to the payroll process—particularly once overtime becomes a factor payroll process—particularly once becomes! Employee can choose to use existing leave under the employer can pay regular rate without shift.! Two different types of jobs within the same job title, job description and functions exact company... As explained in the FLSA regulations describe this as long as you type worker i.e! There are several steps to go through first for employers, multiple pay.! Helps you quickly narrow down your search results by suggesting possible matches as you are paying them overtime for hours... Don ’ t pay your day-rate can an employee be paid two different rates overtime, you can have an employee may work in or! When the employee thinks you should calculate it at the higher rate rates vary... Each day to and from a job site like more information about her services, please contact susan paid or., hostess, and the rate is still pay workers performing two different jobs different!
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