When you create a paycheck for an employee, enter the hours worked at each rate and enter any overtime or double overtime hours. By default, Ludt Payroll bases overtime and double overtime calculations on the employee's highest pay rate for the pay period.
For example, if you enter 30 hours worked at a Regular Pay rate of $10 an hour, 10 hours worked at an Hourly 2 rate of $12 an hour, and 10 hours overtime, we calculate gross wages of $600.00.
(30 x $10) + (10 x $12) + (10 x ($12 x 1.5)) = $600.00
Note: If you accept the higher rate for overtime calculations, you do NOT need to read the rest of this document.