Retroactive overtime
Encyclopedia
Retroactive Overtime (ROT) is an additional amount of money that is awarded to an employee when the employee has a combination of overtime
and an additional amount of money, such as a commission
or a bonus
that is guaranteed based upon work requirements. Overtime is required to qualify for retroactive overtime. So, if a salesperson receives a commission, but does not receive overtime, then the employee does not qualify for retroactive overtime.
period to look up the coefficient percentages from the Coefficient table (Form WH-134)
. This coefficient percentage is then multiplied by the commission and/or bonus to determine the ROT amount that will be awarded to the employee in addition to the already existing overtime and commission.
The additional amount on money beyond the overtime, the commission or bonus, must be a guaranteed payment to the employee based upon specified work criteria. Here are some examples of some bonuses that qualify and do not qualify.
there are also overtime hours paid during the same pay period of the qualifying bonus. You could also consider this to have an OT value of zero and add an additional look-up table value of all zeros for the percentages to use to determine the ROT amount.
bonus that may be awarded to employees. This is not a guaranteed bonus that the employee will receive for meeting a specified goal, but is rather a bonus that is awarded to the employee on the discretion of the company.
Overtime
Overtime is the amount of time someone works beyond normal working hours. Normal hours may be determined in several ways:*by custom ,*by practices of a given trade or profession,*by legislation,...
and an additional amount of money, such as a commission
Commission (remuneration)
The payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold...
or a bonus
Performance-related pay
Performance-related pay is money paid to someone relating to how well one works. Car salesmen, production line workers, for example, may be paid in this way, or through commission....
that is guaranteed based upon work requirements. Overtime is required to qualify for retroactive overtime. So, if a salesperson receives a commission, but does not receive overtime, then the employee does not qualify for retroactive overtime.
Computation
Retroactive Overtime is computed by using the number of hours of overtime worked for the specified payrollPayroll
In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons...
period to look up the coefficient percentages from the Coefficient table (Form WH-134)
. This coefficient percentage is then multiplied by the commission and/or bonus to determine the ROT amount that will be awarded to the employee in addition to the already existing overtime and commission.
The additional amount on money beyond the overtime, the commission or bonus, must be a guaranteed payment to the employee based upon specified work criteria. Here are some examples of some bonuses that qualify and do not qualify.
Qualifying bonuses
If an employee is awarded a known amount of money for working a certain shift or for working a number of consecutive weeks, then that additional amount of money that is paid beyond the regular base pay and overtime will qualify for retroactive overtime, if and only ifIf and only if
In logic and related fields such as mathematics and philosophy, if and only if is a biconditional logical connective between statements....
there are also overtime hours paid during the same pay period of the qualifying bonus. You could also consider this to have an OT value of zero and add an additional look-up table value of all zeros for the percentages to use to determine the ROT amount.
Non-qualifying bonuses
If an employee is awarded a discretionary bonus that is not guaranteed based upon specific work criteria, then this bonus does not qualify for retroactive overtime. A good example of this is a ChristmasChristmas
Christmas or Christmas Day is an annual holiday generally celebrated on December 25 by billions of people around the world. It is a Christian feast that commemorates the birth of Jesus Christ, liturgically closing the Advent season and initiating the season of Christmastide, which lasts twelve days...
bonus that may be awarded to employees. This is not a guaranteed bonus that the employee will receive for meeting a specified goal, but is rather a bonus that is awarded to the employee on the discretion of the company.