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Time Entry Weighted Average Overtime FAQs

Updated

CHAPTERS

What is “Weighted Average Overtime Calculation” [WAOT Calc]?
Where does the Weighted Average Overtime Calculation occur?
What does it mean to Normalize the hours?
What transaction types are included in the Weighted Average Overtime Calculation?
I Import my Time Capture through Import/Export, will it apply the Weighted Average Overtime Calculation?
I Import my Time Capture through Import Web, will it apply the Weighted Average Overtime Calculation?
When Importing multiple assignments via Import/Export or Import Web, it appears to be prorating.
My Time Capture comes through Classic Back Office Import Connect Timesheet [Such as BOLD Timesheets or Batch Hours], will it apply the Weighted Average Overtime Calculation?
How does Weighted Average Overtime work?
How are Weighted Average Overtime Rates Calculated?
How do I stop the Weighted Average Overtime Calculation from happening to the talent’s transaction?
My employee is under two Assignments/Placements. Under the same Supplier, but each Assignment/Placement has a different OT Plan?
What are all the different ways transactions get into Classic Back Office Time Entry:
When Supplier config option OTPlanBasedonRootCustomer equals to None how does it impact the Bill Units?
What components are impactful to the Weighted Average Overtime Calculation?

 

 

What is “Weighted Average Overtime Calculation” [WAOT Calc]?

Weighted Average Overtime is required by the Department of Labor (DOL) and is a calculation method used in situations where a talent has varied overtime rates (such as working in two different Assignments/Placements, each with individual rates of pay within a Week Worked or additional earnings from a Non-Discretionary Bonus.

The Weighted Average Overtime calculation that occurs, is performed when manually entering your transactions in Classic Back Office Time Entry or directly importing them into Classic Back Office through Import/Export or Import Web.

 

 

Where does the Weighted Average Overtime Calculation occur?

Weighted Average Overtime Calculation occurs in Classic Back Office:

  • In Time Entry the hours will allocate to OT/DT any time there is a transaction type entered for REG when the REG hours exceeds the Overtime Plan REG maximum
  • In Time Entry the Overtime Premium will calculate when the talent has more than one assignment, and the REG hours exceeds the Overtime Plan REG maximum.
  • In Time Entry the Overtime Premium will calculate when a transaction has a Non-Discretionary Bonus entered.

The only times Weighted Average Overtime does not calculate is:

  • On transactions imported through Import Connect Timesheets [Such as BOLD timesheets], AND the REG Hours [Pay Units] are not altered in Classic Time Entry before processing
  • On transactions that were imported through Import/Export AND have a customization to NOT apply Weighted Average Overtime
  • On transactions that have an OT Plan = None

 

I am not seeing Weighted Average Overtime calculating for my customer who has a pay period of Semi-Monthly. 

Weighted Average Overtime Calculations will only apply to pay periods of Daily, Weekly, and Biweekly. All other pay periods are ignored from the Weighted Average Overtime Calculation.

 

 

What does it mean to Normalize the hours?

In Classic Back Office, Normalizing of hours only occurs to the hours entered for REG [Regular]. When the entry of REG hours exceeds the OT Plan determined maximum REG hours, it will then disburse the REG hours to REG and OT [and/or DT] based on the OT Plan configuration.
In the examples below, the talent is configured with OT Plans = US Fed OT Plan, which allocates overtime after 40 hours REG in a Week Worked.

 

 

Example 1

The employee has two Assignments/Placements, with the total hours of 42.

  • Assignment ID 182098 was entered as 25 hours REG and 7 hours OT at a Pay Rate of $10 and OT Plan = US Fed OT Plan [40 Max REG hours] AND
  • Assignment ID 180727 was entered as 10 hours OT at a Pay Rate of $15 and OT Plan = US Fed OT Plan [40 Max REG hours].

As a result of the value of REG hours entered never exceeding 40 hours, no Weighted Average Overtime is calculated. The OT Pay Rate remains unchanged at $15.

 

mceclip0.png

 


Example 2

The employee has two Assignments/Placements, with the total hours of 42.

  • Assignment ID 182098 was entered as 32 hours REG at a Pay Rate of $10 AND
  • Assignment ID 180727 was entered as 10 hours REG at a Pay Rate of $15.

As a result of the value of REG hours entered exceeding 40 hours, and Weighted Average Overtime is calculated. The OT premium is added to the OT Rate for both Assignments/Placements.

mceclip1.png



Example 3

The employee has an Assignment/Placement, with the total hours of 55.

  • Assignment ID 182098 was entered as 25 hours REG and 30 hours OT at a Pay Rate of $10 and OT Plan = US Fed OT Plan [40 Max REG hours].

As a result, the value of REG entered never exceeding 40, there is no normalization of hours. this is to facilitate forced OT for customers who want to provide OT anytime.

 

mceclip2.png



Example 4

The employee has an Assignment/Placement, with the total hours of 55.

  • Assignment ID 182098 was entered as 55 hours REG at a Pay Rate of $10.

As a result of the REG hours exceeding the value of 40, the system Normalized the hours and allocated 40 hours to REG and 15 hours to OT based on the OT Plan configured.

 

mceclip3.png

 

 

What transaction types are included in the Weighted Average Overtime Calculation?

Only the following four transaction types are considered when determining the Weighted Average Overtime Calculation:

  1. Regular [REG]
  2. Overtime [OT]
  3. Doubletime [DT]
  4. Non-discretionary Bonus
  5. Shift Differential

 

[1] Regular

  • Transaction Type = Paycode,
  • System Name = Reg

mceclip4.png

 

[2] Overtime

  • Transaction Type = Paycode,
  • System Name = OT

mceclip5.png

 

[3] Doubletime

  • Transaction Type = Paycode,
  • System Name = DT

mceclip6.png

 

[4] Non-Discretionary Bonus

  • Transaction Type = Paycode
  • Vertex Code = Bonus,
  • Is Discretionary Bonus Option = UNCHECKED

Note: for this configuration, the System Name can hold any value and is not impactful to determine the inclusion of the transaction type in the Weighted Average Overtime Calculation.

 

mceclip7.png

 

[5] Shift Differential

  • Transaction Type = Paycode
  • System Name = Shift Differential
  • Include in Reg Rate of Pay = CHECKED

 

I Import my Time Capture through Import/Export, will it apply the Weighted Average Overtime Calculation?

The standard Import/Export mapping is configured to apply the Weighted Average Overtime Calculation, however, there are some Import/Export mappings that Avionté Technical Services team has customized to not apply the Weighted Average Overtime Calculation.

 

 

I Import my Time Capture through Import Web, will it apply the Weighted Average Overtime Calculation?

With Import Web Weighted Average Overtime Calculation occurs while importing into Classic Time Entry.

 

 

When Importing multiple assignments via Import/Export or Import Web, it appears to be prorating.

The system does not prorate if a talent has multiple assignments being imported at the same time.

The normalization of hours will be determined by going through 2 loops based on if the time capture is Daily or Weekly.

 

Daily transactions process first, if none, then weekly transactions process.

With the Daily, the assignments are looked at based on first in/first out, and the system will assess the hours one day at a time.

 

For Example: Employee Jack Black has 2 assignments.

Assignment 180119 has a total of 56 hours.

mceclip8.png


Assignment 180190 has a total of 32 hours.

mceclip9.png


With the Daily, the assignments are looked at based on first in/first out, and the system will assess the hours one day at a time.


For this example:

  • System looks at assignment 180119 first, starting with Monday for 10 hours [1],
  • then assignment 180190 Monday for 10 hours [2].
  • Next will be assignment 180119 Tuesday for 12 hours [3], so far the system has a total of 32 REG hours.
  • Next is assignment 180190 for 10 hours REG [4]. Adding 10 hours would cause the REG to exceed the 40 REG maximum, so the system applies 8 hours to REG and 2 hours to OT.
  • The rest of the hours will be allocated to OT.

mceclip10.png

 

Time Entry Results:

mceclip11.png

 

 

My Time Capture comes through Classic Back Office Import Connect Timesheet [Such as BOLD Timesheets or Batch Hours], will it apply the Weighted Average Overtime Calculation?

 

BOLD Timesheets and the Classic utility of Import Connect Timesheet WILL NOT facilitate Weighted Average Overtime Calculations at this time. BOLD Timesheets was never designed to apply Weighted Average Overtime Calculations.

 

However, if the transactions are altered within Classic Back Office Time Entry before they are processed, the system will apply the Weighted Average Overtime Calculations based on the Classic Back Office OT Plan configuration.

Note: If you’re using Time Connect, follow these steps to add bonuses to the imported timesheet:

  1. After importing the Connect timesheet, navigate to Sheet View.
  2. Click on Actions > Mass Update.
  3. Select the transactions to which you want to add bonuses.
  4. For the Action Type, choose Update from Assignment.

This process will apply the OT (overtime) plan from the assignment to the selected transactions, enabling the OT weighting to function properly.

 

The following are alterations that will yield a calculation of Weighted Average Overtime in Back Office:

  • Updating REG Pay Unit/Hours
  • Delete of transaction, manually re-adding the transaction in Time Entry.
  • Note: changing ONLY the OT Plan on the transaction will not impact the Overtime calculations.

 

Classic Back Office OT Plans configurations can be found in the following areas listed in order that the system looks at in determining the OT Plan overrides:

  • First - Card View > Snapshot > OT Plan
  • If no plan in Card View, then Assignment > Detail > OT Plan
  • If no plan in Assignment, then Order > Detail > OT Plan
  • If no plan in Order, then Customer > Sales & Service > Service Info > OT Plan

 

 

How does Weighted Average Overtime work?

  • It Normalizes the entered REG hours.
    • Normalizing of hours only occurs when the entry of REG hours exceeds the OT Plan configured REG maximum hours.
    • It will then disburse the REG hours to REG and OT [DT] based on the OT Plan configuration. [See FAQ “What does it mean to Normalize the hours?” for examples]
    • If the transactions have been imported through Import Connect Timesheet, Weighted Average Overtime does not occur unless the transactions are altered within Classic Back Office Time Entry.
    • Takes into consideration multiple Assignments/Placements within the same Supplier [same FEIN]. When there is REG hours entered on multiple Assignments/Placements, AND the total REG hours exceed the REG maximum hours of the OT Plan, the system automatically takes into consideration the hours on all transactions entered and Normalizes the hours.
  • It determines the “Regular Rate”
  • It calculates the Weighted Average Overtime and Doubletime Rates.

 

 

How are Weighted Average Overtime Rates Calculated?

Detailed examples of the Weighted Average Overtime Calculation are in the article listed below:

 

The following are the steps to determine the Weighted Average Overtime Rate:

  1. Determine the Total Hours by adding all hours from all Assignments/Placements for the talent.
  2. Determine the Total Regular Pay amount by using the total hours for each Assignment/Placement multiplied by the Assignment/Placement’s regular rate
    [For each Assignment/Placement ((REG hrs + OT Hrs + DT hours) x REG rate) + (Non-Discretionary Bonuses)] and add all Assignment/Placement amounts together.
  3. Determine the Calculated “Regular Rate” by taking the Total Regular Pay divided by the Total Hours.
  4. Determine the Weighted Average Overtime Premium amount
    1. Weighted OT Premium by dividing the Calculated Regular Rate by 50%.
    2. Weighted DT Premium (if applicable) by dividing the Calculated Regular Rate by 100%.
  5. Determine the Weighted Average Overtime and Doubletime Rates by adding the Assignment/Placement’s Regular Rate plus the Weighted Average Premium amount.
  6. Apply the Weighted Average Overtime and Doubletime Rates to the talent.

 

 

How do I stop the Weighted Average Overtime Calculation from happening to the talent’s transaction?

Update the transaction to have an OT Plan = None. This will prevent the system from applying the Weighted Average Overtime Calculation.

 

mceclip12.png

 

Example 1

The employee has an Assignment/Placement, with the total hours of 55.

  • Assignment ID 182098 was entered as 55 hours REG at a Pay Rate of $10 and OT Plan = None [No Max REG hours].

As a result, the value of the Assignment 182098 OT Plan being None, the REG hours will remain unchanged at 55 hours.

 

mceclip13.png

 

Classic Back Office OT Plans configurations can be found in the following areas:

  • First - Card View > Snapshot > OT Plan
  • If no plan in Card View, then Assignment > Detail > OT Plan
  • If no plan in Assignment, then Order > Detail > OT Plan
  • If no plan in Order, then Customer > Sales & Service > Service Info > OT Plan

My employee is under two Assignments/Placements. Each under different Suppliers. Will Weighted Average Overtime Calculation apply.

 

Weighted Average Overtime Calculation will not aggregate the transactions across suppliers [each supplier has a unique FEIN]. Only Assignments/Placements within the same supplier will be considered for the calculation of Overtime, in general.

 

 

My employee is under two Assignments/Placements. Under the same Supplier, but each Assignment/Placement has a different OT Plan?

 

Example 1

The employee has an Assignment/Placement, with the total hours of 55.

  • Assignment ID 182098 has OT Plan = US Fed OT Plan [40 Max REG hours].

    mceclip14.png

  • Assignment ID 180727 has OT Plan = OT 60/wk [60 Max REG hours].

    mceclip15.png

  • Assignment ID 182098 was entered as 55 hours REG at a Pay Rate of $10 and OT Plan = US Fed OT Plan [40 Max REG hours]. This is the first transaction assignment entered.

  • Assignment ID 180727 was entered as 25 hours REG at a Pay Rate of $15 and OT Plan = OT 60/wk [60 Max REG hours]. This is the second transaction assignment entered.

mceclip16.png

Looking at the screenshot above, the 55 hours entered for Assignment 182098 with OT Plan = US Fed OT Plan, the hours are normalized to REG hours of 40 and OT hours of 10.

Then for Assignment 180727, with OT Plan = OT 60/wk, the 25 hours entered are normalized to REG hours of 20 and OT hours of 5.
[40 hours from Assignment 182098 + 20 hours from Assignment 180727 makes the 60 hours Maximum REG value for that OT Plan, and only 5 hours are allocated to OT]

 

Example 2

The employee has two Assignments/Placements, with the total hours of 45.

  • Assignment ID 180727 has OT Plan = OT 60/wk [60 Max REG hours].

    mceclip17.png

  • Assignment ID 182098 has OT Plan = US Fed OT Plan [40 Max REG hours].

    mceclip18.png

  • Assignment ID 180727 was entered as 30 hours REG at a Pay Rate of $15 and OT Plan = OT 60/wk [60 Max REG hours]. This is the first transaction assignment entered.

  • Assignment ID 182098 was entered as 15 hours REG at a Pay Rate of $10 and OT Plan = US Fed OT Plan [40 Max REG hours]. This is the second transaction assignment entered.

mceclip19.png

Looking at the screenshot above, the 30 hours entered for Assignment 180727 with OT Plan = OT 60/wk, the hours are unchanged at 30 hours.

Then for Assignment 182098, with OT Plan = US Fed OT Plan, the 15 hours entered are normalized to REG hours of 10 and OT hours of 5.
[30 hours from Assignment 180727 + 10 hours from Assignment 182098 makes the 40 hours Maximum REG value for that OT Plan, and only 5 hours are allocated to OT]

 

 

What are all the different ways transactions get into Classic Back Office Time Entry:

  • Classic - manually entered transactions into Time Entry
  • Import Connect Timesheets [BOLD Timesheets / Batch Hours] - imports into Time Entry
  • Import / Export [Flat Files / WorkN Export] – imports into Time Entry
  • Import Web [Classic Legacy Portal] - imports into Time Entry

 

 

When Supplier config option OTPlanBasedonRootCustomer equals to None how does it impact the Bill Units?

The OTPlanBasedonRootCustomer property controls whether to calculate the bill hour with the weighted pay and bill rates for employees that have worked on two different assignments for two customers (with one customer being the parent customer, and the other being a department for that customer - same root customer).

mceclip20.png

 

None - If an employee accrues enough hours to enter OT across multiple assignments, no create OT Bill units will be generated.

Customer – If an employee accrues enough hours to enter OT across multiple assignments and these assignments are for the same Customer (same CustomerID or same department) then bill units will also be pushed to OT.

RootCustomer – If an employee accrues enough hours to enter OT across multiple assignments and these assignments are for different Customers but share the same Root Customer(same customer different department), OT units will be created for both Pay and Bill.

 

Employee Madison works 50 hours.

  • Assignment ID 182098 was entered as 40 hours REG at a Pay Rate of $10 and OT Plan = US Fed OT Plan [40 Max REG hours].

  • Assignment ID 180727 was entered as 10 hours REG at a Pay Rate of $15 and OT Plan = US Fed OT Plan [40 Max REG hours].

mceclip21.png

 

Assignment 182098 is a singular assignment and allocates Pay and Bill units.

 

The introduction of a second assignment, when Assignment 180727 is entered, the system will consider the config option of OTPlanBasedonRootCustomer. Since OTPlanBasedonRootCustomer = None, when entering REG hours for 10 Pay Units, the system reallocates the REG hours Pay Units to OT hours, however the Bill Units remain under REG and move NONE of the Bill Units to OT.

 

 

What components are impactful to the Weighted Average Overtime Calculation?

  1. Employee defined OT Plan
    Classic Back Office OT Plans configurations can be found in the following areas by hierarchy:
    1. Customer > Sales & Service > Service Info > OT Plan
    2. Order > Detail > OT Plan
    3. Assignment > Detail > OT Plan
    4. Card View > Snapshot > OT Plan
      1. This is the master override

  2. OT Plan configuration
    In Classic Back Office all overtime plan standard configurations reside in SQL procedures and are not customer configurable. The following KB Article will provide details to the Overtime Plan configurations.
    Overtime Plans and Work Schedules
  3. Multiple Assignments/Placements with different Pay Rates
    Determination of Weighted Average Overtime Premiums are impacted only when there are multiple Assignments/Placements [same Supplier/FEIN] AND with different Pay Rates.

  4. Platform Time Capture Input
    1. CLASSIC Time Entry – Normalizes Hours, Determines Weighted Average Overtime Premiums
    2. CLASSIC Import Connect Timesheet – does not Normalizes Hours, does not determine Weighted Average Overtime Premiums
      Unless the transaction is altered prior to processing, then it will Normalize Hours and determine Weighted Average Overtime Premiums based on the Classic Back Office OT Plan
    3. CLASSIC Import/Export – [Standard Import/WorkN Time Card Import] Normalizes Hours, does not determine Weighted Average Overtime Premiums
      Customized imports could have the Avionté Technical Services apply/not apply the Normalization of hours. 
    4. BOLD Timesheet – Normalizes Hours, does not determine Weighted Average Overtime Premiums
    5. BOLD Batch Hours – Normalizes Hours, does not determine Weighted Average Overtime Premiums
    6. WorkN Export – does not Normalizes Hours, does not determine Weighted Average Overtime Premiums

  5. Week Worked
    Defines the period of time used to normalize the hours for overtime. As well as assessing the existence previous transactions that may have been processed through payroll already, it ties together multiple transactions entered for a talent that may impact the Weighted Average Overtime Premiums

  6. Pay Units received
     Weighted overtime needs Pay Units of REG only [not a combination of REG/OT/DT, as the system only normalizes based on REG pay units entered] to be entered/imported to allow the system to determine the REG, OT, DT based on the employees configured OT Plan rules. 

  7. Transaction Types
    Only the transaction Types below are used:
    1. REG
    2. OT
    3. DT
    4. Non-Discretionary Bonus
      1. “Is Discretionary Bonus” checkbox needs to be unchecked

  8. Config Options
    Need to research all applicable
    1. Config Option - DefaultCustomerOTPlan
    2. Config Option - UseOTPlan2
    3. Config Option - DefaultOTFactor
    4. Config Option - ShowPayMultiplier
    5. Config Option - AllowOverrideOTDTRate
    6. Config Option - OTPlanBasedonRootCustomer
    7. Config Option - OTPlanAutoWeightOTDTBillRate
    8. Config Option - CalculateRateForNullMarkup
    9. Config Option - DefaultDTFactor
    10. Config Options Index
    11. Time Entry Config Options

  9. Data Requirement Messages [DRMs] areas that include Overtime:
    1. DRMs Time Entry
    2. DRMs Payroll
    3. DRMs Billing

 

 

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