I Need Your Input: Regular Rate of Pay…Your Payroll System

I recently had a discussion with an associate (also an payroll consultant) about the regular rate of pay and payroll systems in general.  Unfortunately the question we both had, we could not fully answer. So I am turning to my blog followers to help me out.  When I started in payroll we did payroll by hand, including the regular rate of pay calculations.  Of course, systems have improved since 1977.  But my question is…which current systems (whether in-house or service bureau) do regular rate of pay calculations?  For example, I give a bonus to an employee for finishing a project on time (nondiscretionary bonus) and he earned it in the same week it was paid.  For this scenario would your payroll system do the regular rate of pay calculation? Or would you have to do it by hand and add it in?  Second example, an employee receives a monthly commission on sales (hourly employee).  He is paid his commission on July 15th for the month of June.  Would your system be able to recalculate the additional overtime due? Or would you have to do it by hand (Excel spreadsheet)?

If your system does not do the regular rate of pay calculation, did you know this when you bought the system or signed up for the service bureau?

I appreciate any input you might have on the subject.  Please include the name of the system if you can do so. Also please note if you had to have a special  program written to handle the calculations.

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7 thoughts on “I Need Your Input: Regular Rate of Pay…Your Payroll System

  1. We use PeopleSoft 9.2 and it will calculate the regular rate of pay. We have tons of customization because of the nature of our businesses (mostly government contracts), so in this instance our IPT group did have to do some configuration to make it work, particularly for any retroactive calculations.

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  2. After watching your Ascentis seminar on Wage and Hour law, I explained to my company that we are not handling shift differentials correctly. We use ADP. I do not know if upper management is going to pursue it with ADP. This is the second time I’ve brought it up and and second time I’ve heard nothing back. I am in payroll and I would know if we were going to make changes.

    It’s too bad because as onerous as California’s “regular rate of pay” is for the employer, our employees are not union. Because employees do not know the rules, they are not enforced. I must keep my company anonymous.

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  3. We also use PeopleSoft and it does indeed calculate the regular rate of pay, both current and with a look-back period, for the overtime calculation. Our version is also highly customized and I’m sure that at some point we’ve tweaked the system in house to make it work for us.

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  4. My in-house government ERP software will do regular rate of pay… but you have to know how to do it yourself to get it done. They call it “blended rate”. It handles current pay period fine, but is “less than accurate” (per their support) on prior pay periods, so I get to do those. Fortunately not a lot of bonuses in government work.

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  5. Workday does both types of calculations but the latter, allocating a bonus across multiple weeks, requires additional configuration.

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