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FastFacts Feature Presentation

FastFacts Feature Presentation. June 7, 2012. To dial in, use this phone number and participant code… Phone number: 888-651-5908 Participant code: 182500 . To participate via VoIP… You must have a sound card You must have headphones or computer speakers.

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FastFacts Feature Presentation

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  1. FastFactsFeature Presentation June 7, 2012 • To dial in, use this phone number and participant code… • Phone number: 888-651-5908 • Participant code: 182500 • To participate via VoIP… • You must have a sound card • You must have headphones or computer speakers © 2012 The Johns Hopkins University. All rights reserved.

  2. Today’s Topic We’ll be taking a look at… Overtime Pay – Real-Life Scenarios & Special Issues

  3. Today’s Presenters Sue O’Hare – Sr. Compensation Analyst Jill Horn – Compensation Manager

  4. Session Segments Presentation Sue and Jill will discuss the new E210 overtime report as well real-life scenarios and special issues regarding overtime. During the presentation, your phone will be muted. Q&A After the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Sue and Jill will answer as many of your questions as time allows.

  5. Contact Us If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: fastfacts@jhu.edu You can also send us an instant message! GoogleTalk – HopkinsFastFacts@gmail.com AOL Instant Messenger – HopkinsFastFacts MSN – FastFacts@jhu.edu

  6. Survey Survey At the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

  7. How To View Full Screen Click Here

  8. Overtime Pay – Real-Life Scenarios & Special Issues

  9. FastFacts Series on Compensation Topics • Hours Worked & Time Off Plans – March 28, 2012 • Understanding and Calculating Regular Rate – April 24, 2012 • Tracking Time in E210 & Processing Overtime in SAP – May 10, 2012 • Overtime Pay – Real-Life Scenarios & Special Issues - June 7, 2012

  10. Review – FastFacts #1 • Hours Worked & Time Off Plans • Required to pay non-exempt employees for all time worked • With or without supervisor approval • Regardless of departmental budget contraints • Generally include: wait time, on-call time, meal & rest periods, sleep time, travel time, lectures, meetings, training, pre/post activities • May only grant time off in lieu of pay for overtime hours worked during the same pay period (Time Off Plan) • Any time not worked (e.g., vacation, holiday) must be excluded from calculating overtime

  11. Review – FastFacts #2 • Regular Rate • Key concept – Rate used to calculate premium overtime pay. Premium OT pay is 1.5 times regular rate for hours worked in excess of 40 in a workweek. • Not always equal to an employee’s standard/base hourly rate • Regular Rate = total earnings (minus exclusions) total number of hours worked • Total Earnings (minus exclusions) = total standard/base pay + inclusions

  12. Review – FastFacts #3 • Recording Time in the E210 System & Processing Overtime Pay in SAP • All full-time and part-time employees must complete E210. • Keeping accurate time records is required by law. • Non-exempt employees must record time weekly; supervisors must review E210 entries weekly. • Non-exempt employees must enter actual hours worked and leave used weekly. • Round to nearest quarter hour when recording OT hours and paying those hours on the Bonus/Supplemental ISR. • Explanations required for E210 codes P, C, W, AH, XO.

  13. Review – FastFacts #3 cont’d • Recording Time in the E210 System & Processing Overtime Pay in SAP • Leave time and leave time + hours worked – cannot be greater than scheduled work hours in a day • Time off in lieu of pay within same pay period as follows:

  14. Review – FastFacts #3 cont’d • Recording Time in the E210 System & Processing Overtime Pay in SAP • Supervisor (or designate) must review non-exempt E210 weekly & submit Bonus/Supplemental ISR to pay additional hours worked within next pay period

  15. Introducing… • The HX code in E210 • Effective July 1, 2012 • Use when working on a holiday • The E210 Overtime Report • Available beginning July 1, 2012

  16. E210 Overtime Report • For non-bargaining unit non-exempt employees who record hours worked in E210 only • Identifies non-exempt employees who worked overtime hours • Bonus Feature: Identifies employees who may have worked less than their standard hours in a workweek OR who may not have recorded all hours worked

  17. E210 Overtime Report • Uses E210 entries and automates calculation of: • Total hours recorded • Total hours worked • Total leave and HX hours used (exempt from premium overtime) • Total holiday hours worked • Total hours worked @ standard overtime • Total hours worked @ premium overtime • Total holiday hours worked @ premium overtime • Specifies Bonus/Supplemental ISR submit date from HR/Payroll Shared Services cut-off dates based on workweek ending dates

  18. New Overtime Report in E210 Key Features • Department selection – may specify department code using 5, 3, or 1 digit(s) • For example, U4321, U43, or U • Date range for overtime reporting – E210 entries from July 1, 2011 • Sort capability by: • Department • Employee last name • Personnel number (pernr) • ISR processing date

  19. New Overtime Report in E210 Key Features • Easy access to view E210 time entries by clicking on an employee’s pernr • Flags employees who had a change in hours or FLSA category during a month • Signals need to review E210 Overtime Report calculations closely • May need to be manually re-calculated

  20. New Overtime Report in E210

  21. New Overtime Report in E210 • Column Definitions • Department – legacy department code • Month Submitted Date – date last submitted • Form Status – status of E210 record, i.e., S = submitted only, A = submitted and approved, L = locked down • Week Ending – last day of the workweek when overtime hours were worked • Scheduled Total Hours – employee’s standard total weekly hours (not work schedule rule) when E210 for the month was submitted

  22. New Overtime Report in E210 • Column Definitions • Total Hours Recorded – all hours entered including non-worked hours, e.g., vacation, sick, holiday, personal day, time off in lieu of pay • Total Hours Worked – all hours worked coded as X, HX, XO • Leave & (HX) Hours Exempt from FLSA Premium Overtime – non-worked hours, e.g., vacation, sick, all time not coded as X, XO. • Holiday Hours Worked (HX Code) – hours worked on a university designated holiday. Paid or to be taken as leave at 1.5 times of actual number of hours worked. • Standard OT (WT 2084) – overtime hours paid at employee’s standard/base rate. Use wage type 2084.

  23. New Overtime Report in E210 • Column Definitions • Premium OT Non-Holiday Worked (WT205A) – number of overtime hours worked over 40 hours in the workweek paid at 1.5 times of employee’s standard/base rate. Use wage type 205A. • If other FLSA earnings are also paid during the same workweek, then use regular rate. Use wage type 205M. • Premium OT Holiday Worked (WT205A) – hours worked on a holiday paid at 1.5 times of employee’s standard/base rate. Use wage type 205A or take as leave at 1.5 times for all actual hours worked. • Process ISR By – HR/Payroll Shared Services website cutoff dates for Bonus/Supplemental ISR

  24. New Overtime Report in E210

  25. New Overtime Report in E210 Important To Note! • Usefulness of the report depends on: • Integrity and accuracy of your employees’ position data in SAP and E210 • Correct usage of time and leave codes • Accuracy and completeness of time recorded • Timeliness of recording time worked and leave used

  26. New Overtime Report in E210 Important To Note! • E210 Overtime Report calculations may not be accurate when an employee’s: • Scheduled hours change during the month • FLSA status changes during the month • E210 is submitted in advance • Position information in SAP is inaccurate Require close review! E210 Overtime Report should be a guide; may need to manually calculate hours - refer to FastFacts #3

  27. New Overtime Report in E210 Important To Note! • E210 Overtime Report calculations may not be accurate when an employee: • Begins or ends employment mid-week • Works additional hours one week and takes time off in lieu of pay the following week (Time Off Plan) • Works as a required attendance personnel when the university or office is closed • E210 Overtime Report calculations may not be accurate for dates prior to July 1, 2012. Require close review! May need to manually re-calculate hours on E210 Overtime Report

  28. New Overtime Report in E210 Important To Note! • Negative number in the Standard OT, WT2084 column signals one of two things: • Time missing or entered incorrectly in E210; corrections in E210 are required • ISR may need to be submitted to reduce pay • To compensate for additional hours worked, must submit a Bonus/Supplemental ISR!

  29. New Overtime Report in E210 • When will the E210 Overtime Report be available? • July 1, 2012 • Will there be training in the use of the Overtime Report? • In-person training for timekeepers will be scheduled shortly. • Whom may I call if I need help in understanding my department’s Overtime Report? • Contact your departmental timekeepers or Human Resources Divisional Leave Administrator.

  30. Special Scenarios • Receiving pay for holiday hours worked • Receiving time off in lieu of pay for holiday hours worked • Scenario #2 – Paying for other FLSA Earnings • Scenario #3 – Overtime Pay & Bonus • Scenario #4 – Overtime Pay & Retroactive Increase • Scenario #1 – Working on a Holiday

  31. #1 – Working on a Holiday • Because of an upcoming project deadline, Mary was asked by her supervisor to work additional hours. Her supervisor gave her permission to work on Martin Luther King Day, Monday, January 16, 2012, which is a university holiday. Mary also worked additional hours on Tuesday, Wednesday, Thursday and Friday. • Works 40 hour workweek, 8 hours/day, 8:30 a.m. – 5:00 p.m., Monday – Friday • Standard/base hourly rate = $10.00 • Mary’s completed E210 timesheet

  32. #1 – E210 Overtime Report • The E210 Overtime Report automatically calculates the hours worked and overtime hours. • Determining Standard & Premium Overtime Hours: • Total Hours Recorded = 46 hours • Total Hours Worked = 43 hours (excludes 3 hrs holiday leave on Monday) • Leave & (HX) Hours Exempt from FLSA Premium OT = 8 (includes 3 hrs holiday leave + 5 holiday hrs worked) • Total Standard OT = 6 hours • Total Premium OT (Holiday) = 5 hours • Holiday Hours Worked: Employee is paid his/her normal pay plus one-and-one half times his/her regular rate for all hours worked on a university holiday or receives equivalent time-off at a future date at a rate of one-and-one half times. • No Pyramiding: Premium pay paid for working on a holiday is excluded from the calculation of overtime for the week.

  33. #1 – Processing OT in SAP • To pay Mary for working on MLK holiday and the six additional hours, Mary’s supervisor submits a Bonus/Supplemental ISR for weekending 1/22/2012. Wage Type 2084 6 Hours $60.00 Total OT Pay 5 Hours $15.00 OT Rate $75.00 Total OT Pay Wage Type 205A

  34. #1 – Processing OT in SAP • Wage Type 205A always calculates additional hours worked at the rate of 1.5 times the employee’s standard/base rate. • Premium for working on MLK holiday is based on university policy, not required by the FLSA. • Always 1.5 times the employee’s standard/base rate. • In this scenario, no need to calculate regular rate. • Mary did not receive any other additional compensation. • Mary’s regular rate is the same as her standard/base rate.

  35. #1 – Holiday: Time Off • WHAT IF? Mary asks her supervisor if she may take time off the following week in lieu of pay for all the additional hours she worked this week, which is then approved by her supervisor because the project would be completed by then. • Holiday Hours Worked: Since Mary worked 5 hours on MLK holiday, she may take 7.5 hours time-off in lieu of pay. • Additional Overtime Hours Worked: For the additional 6 hours Mary worked from Tuesday to Friday, she may take 6 hours time-off in lieu of pay.

  36. #1 – Holiday: Time Off • Mary’s completed E210 timesheet • Total 13.5 hours of time off in lieu of pay

  37. #1 – Holiday: Time Off • E210 Overtime Report • Bonus/Supplemental ISR is NOT Required • Because Mary is taking time off in lieu of pay for all additional hours she worked, there was no need to submit a Bonus/Supplemental ISR for week-ending 1/22/12 even though the Overtime Report indicates 6 hours under Standard OT and 5 hours under Premium OT-Holiday Worked.

  38. #2 – Paying other FLSA Earnings • Paul is a Technical Support Analyst in the IT Department located at the Homewood Campus. Paul often travels to other worksites to provide desktop computing services. He is periodically required to carry a beeper on the weekend and sometimes works an evening and night shift. • Works 37.5 hour workweek, 7.5 hours/day, 8:30 a.m. - 5:00 p.m., Monday – Friday • Standard/base hourly rate = $21.00 • On-call pay = $200 per weekend • Shift differential pay = $1.00/hr. evening; $1.50/hr. night • Monday, April 2: Paul is scheduled to go directly from his home to a client department at Eastern High School. However, he must first pick up two computers that were fixed over the weekend at Homewood before going to Eastern. He picked up the computers at 7:30 a.m., then traveled to Eastern. • At Eastern, he ended up eating and working through his lunch hour because he had another appointment at 1:00 p.m. Part of the lunch time included waiting for back-up from his office and downloading special software. Paul left work at 4:00 p.m. to make up for the hour he arrived early. • Weekend: Paul has on-call duty. He answered one call on Saturday morning (under 5 minutes). At 1:00 p.m. he received a call that required him to be at work at 9:00 p.m. He worked from 9:00 p.m. until midnight.

  39. #2 – Hours Worked • Paul’s completed E210 timesheet • Understanding hours worked • Monday, April 2nd – Total hours worked is 8.5 hours. • 8.5 hours – Worked from 7:30 a.m. until 4:00 p.m. Includes 1 hour lunch time because Paul worked during his lunch break. • Paul was scheduled to commute directly from home to an alternative work location (Eastern). Normally this time would not be hours worked, however Paul had to stop by his office at Homewood for official business. All work activities from the time arrived at Homewood until the end of his work day are considered hours worked. This includes commute time between work locations. • Paul left an hour early from his normal schedule to make up for the hour he arrived early. The time from 4:00 p.m. to 5:00 p.m. was not worked.

  40. #2 – E210 Overtime Report • The E210 Overtime Report automatically calculates the hours worked and overtime hours. • Determining Standard & Premium Overtime Hours: • Total Hours Recorded = 47 hours • Total Hours Worked = 43.25 hours (excludes 3.75 hrs vacation leave on Friday) • Leave & (HX) Hours Exempt from FLSA Premium OT = 3.75 (includes 3.75 hrs vacation leave) • Total Standard OT = 6.25 hours • Total Premium OT = 3.25 hours

  41. #2 – Regular Rate On-call and shift differential pay are included as part of “regular rate” and are considered in calculating overtime. • Total hours worked = 43.25 hrs (excludes 3.75 hrs VL) • Standard/base rate = $21.00/hr • Total standard/base pay (43.25 hrs x $21.00/hr) = $908.25 • Total evening shift hours = 3 hours • Evening shift differential rate = $1.00/hr • Total shift differential pay (3 hrs x $1.00/hr) = $3.00 • On-Call pay = $200.00 • Total earnings (minus exclusions) = total standard base pay + inclusions =$908.25 total standard base pay + $3.00 shift differential pay + $200.00 on-call pay = $1111.25 Regular rate = total earnings (minus exclusions) total number of hours worked = $1111.25  43.25 hours = $25.69/hr • Premium overtime pay ($25.69/hr regular rate x 0.5 x 3.25 premium OT hours) = $41.75 • Pay for vacation leave = ($21.00/hr standard/base rate x 3.75 vacation leave hours) = $78.75 • Tot weekly pay ($1111.25 tot earnings+$78.75 vacation pay +$41.75 premium OT) = $1,231.75

  42. #2 – Processing in SAP • Rate in Effect Calculation required to process in SAP • Rate-in-Effect = (regular rate x 0.5) + employee’s standard/base rate = ($25.69 x 0.5) + $21.00 = $33.85

  43. #2 – Processing in SAP • Paul’s completed Bonus/Supplemental ISR for weekending 4/8/2012 Wage Type 2084 6.25 Hours $131.25 Total OT Pay 3.25 Hours $33.85 Rate in Effect $110.01 Total OT Pay Wage Type 205M

  44. #2 – Processing in SAP • Paul’s completed Bonus/Supplemental ISR for weekending 4/8/2012 3 Hours shift diff $1.00 per hour $3.00 Pay subtotal Wage type 2290 & Wage Type 3040 $200.00 On call $200.00 Pay subtotal $203.00 Total Other FLSA Earnings

  45. #2 – What if Paul Received a Bonus? • WHAT IF? For the week ending 4/8/2012, Paul received a $200.00 lump sum discretionary bonus by his department for a significant project he completed. • Should this award be included in the calculation of his regular rate for overtime? • The answer: No. Because the $200.00 is a discretionary bonus, it should not be included in the calculation of his regular rate for overtime pay. • WHAT IF? On July 1, 2012, Paul receives a $200.00 end of year non-discretionary bonus as part of a formal Employee of the Year program in his department. • Should this award be included in the calculation of his regular rate for overtime? • The answer: Yes. Because the bonus is non-discretionary, it should be included in the calculation of his regular rate for overtime pay. Additionally, because the bonus is for work performed over the past year, it requires a re-calculation of all overtime pay made in the last year for hours worked over 40 hours in a workweek.

  46. Scenario #3 & #4 • Overtime Pay & Bonus • Overtime Pay & Retroactive Increase • Jane is a Patient Service Coordinator in the Physician Billing area. She works a 40 hour workweek and is paid a standard/ base hourly rate of $10.00 hour. Jane received a non-discretionary bonus that was paid a week after it was awarded because the amount wasn’t known until the following week. Later in the year, Jane also was given a retroactive salary increase.

  47. #3 – Overtime Pay & Bonus • Paying Non-Discretionary Bonus – FLSA Regulations • Once bonus amount is ascertained, it must be apportioned back over the workweeks in which it was earned. • Employee receives additional pay for each workweek he worked overtime equal to: Please consult with HR for assistance. • One half the hourly rate of pay allocable to the bonus amount • Multiplied by • Number of overtime hours worked over 40 hours in a week for bonus period

  48. #3 – Overtime Pay & Bonus

  49. #3 – Overtime Pay & Bonus

  50. #3 – Overtime Pay & Bonus Assume: • The following week, a non-discretionary bonus was awarded for work in week 1. • Bonus amount is $50.00. • To recalculate OT pay: • Calculate regular rate of bonus amount = bonus amount/hours worked = $50.00 bonus/50 hours worked = $1.00 • Calculate half of regular rate = regular rate x 0.5 = $1.00 x 0.5 = $0.50 • Calculate additional OT pay due = half of regular rate x number of OT hours = $0.50 x 10 = $5.00

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