• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Don’t let payroll burn you! Plan ahead to account for summer vacations

Get PDF file

by on
in Office Management,Payroll Management

As employees’ thoughts turn toward summer vacation, put two items on your agenda: ensuring that the summer vacation schedule runs smoothly and that employees aren’t overpaid during weeks they take a day or two off.

Stretching weekends without stretching paychecks. July 4 falls on the worst of all possible days this year—Wednesday. A predictable tug of war will ensue, as some employees will want the first half of the week off and others will want the second half. Upshot: You must be careful when calculating nonexempts’ regular rate of pay if they also work overtime during a week they also take time off. For those employees, don’t include their vacation or holiday pay in their regular rates of pay.

Example: Rochelle earns $15 an hour and works eight hours a day. She takes a paid vacation day on Friday; Monday through Thursday she works 45 hours, for a total of 53 hours.

Wrong way: She earns $600 in straight-time p...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Related Articles...

Leave a Comment