Blended or Weighted Rate Overtime

Revised 10/2023

Definition: Where an employee in a single work week 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 weights.  That is, the earnings from all such rates are added together and this total is then divided by the total number of hours worked that week at all jobs.~ Dept. of Labor Fact Sheet #23

How to accomplish this in the SDS program is outlined in this video (6:42 min) recordings.join.me/WlfERxdOFkWyXixL1nEvpQ

 

Follow these instructions to use the blended/weighted rate for computing overtime wages. 

A.  Activate the following options under SDS Web Office Settings:

1.  Select Administrative Utilities.

2.  Select SDS Web Office Settings.

3.  Select the Payroll tab.

§ Activate Blended Rate Overtime Option. Select Y.

§ The First Day of the Work Week: Select the first day of the work week (Sunday could be used as a default—the system will use this setting to allow for entry of time for the specific week it was worked).

§ Select “Save Changes”.

§ Exit the Finance System and re-enter to see the new settings.

 

 

 

B.  Timecard Entry

          1. Select Payroll Processing

          2. Select Gross Pay Entry and Adjustments

§ Select the correct date on “For Payroll Due”.

§ Check the box for “Payroll Includes Time by Week”.

§ Verify the First and Last Workday of the payroll are correct.

§ Enter one timecard for the hours worked each week of the pay period.

§ Select “Enter for OT Week Starting”. This will display the starting date for each week included in the payroll.

§ Select the payroll week.

§ Select “Add Pay” and enter a timecard for the hours worked during that week.

§ Enter a timecard for each payroll week of the payroll in which the employee worked.

 

 

3. Select “Assign OT”.

§ The Blended or Weighted Average Over Time Assignment Options will populate.

§ Once you verify the information, check mark “Award?”.

§ Select “Award OT IF Checked”.