When you pay an employee at different hourly rates, we calculate overtime and double overtime based on their highest hourly rate. You can change the rate paid for overtime to a blended rate (an average of the two hourly rates), or enter the lower of the two pay rates if the overtime hours performed were for the lower rate.
Change the overtime base rate on payday when you're creating a paycheck for this employee.
To change the overtime rate:
- Go to the Payday tab.
- In the Check Details column, click the paycheck icon next to the employee's name.
- Enter the hours worked for each pay rate, and the new overtime base rate, to use for this paycheck.
- Click Create to create the paycheck using the overtime rate you entered.
- Return to the Create Paychecks page to continue entering payroll for other employees.