Statutory Pay Salaried Employee day worked

BBK1 · ‎November 11, 2019

For a Salaried Employee who works on a Statutory holiday. How do I record the hours paid @ 1.5 time? I have Stat pay set up in our payroll already. Do I record 1.5 times pay under "Stat Pay"or under reg hourly pay?

Thank you,

Rochelley · ‎November 12, 2019

Hi @BBK1

Provided the employee will have worked 32 regular hours in the week in which the STAT holiday occurs, you would record your regular STAT pay for the holiday. Then for the hours worked on the same day, you would use your OT payroll item which calculates the OT @ 1.5. Net effect is the employee gets pay @ a rate of 2.5 if they work on that day.

Here's an example using John Doe who earns a $60K salary. This is how I would enter the second week of their timesheet (he is paid Bi-Weekly):

This will pull into the pay cheque like this:

Note that the two salaried items have pulled the hours from the timesheet and adjusted it accordingly. The OT item must be an hourly item as the salary items will not allow you to calculate an OT rate. You should be able to just type the hours into the pay cheque if you don't do timesheets. Of course you would have to enter a regular hourly rate item into the employee's payroll info, and then the OT item so it will calculate correctly.

This is how you'd do it if you use Salary payroll items. Personally, I don't like the way QB handles salaries - very inflexible. I always convert Salaries to hourly rates and enter everything based on hours. Much simpler that way. But the example above will work as a hybrid between Salary items and Hourly items. Your STAT item could be hourly, for that matter, as well.

Hope that helps.

View solution in original post

JamesM · ‎November 11, 2019

Hi there,

Congrats on your first post in the Community. I want to make sure you get the best answer on how to account for this the right way.

I recommend contacting an accounting professional. If you're not in contact with one, I encourage you to search for one on our website using this link here. Doing this will help prevent any future discrepancies. Let me know if you have other questions. I'm here to assist. :)

Rochelley · ‎November 12, 2019

Hi @BBK1

Provided the employee will have worked 32 regular hours in the week in which the STAT holiday occurs, you would record your regular STAT pay for the holiday. Then for the hours worked on the same day, you would use your OT payroll item which calculates the OT @ 1.5. Net effect is the employee gets pay @ a rate of 2.5 if they work on that day.

Here's an example using John Doe who earns a $60K salary. This is how I would enter the second week of their timesheet (he is paid Bi-Weekly):

This will pull into the pay cheque like this:

Note that the two salaried items have pulled the hours from the timesheet and adjusted it accordingly. The OT item must be an hourly item as the salary items will not allow you to calculate an OT rate. You should be able to just type the hours into the pay cheque if you don't do timesheets. Of course you would have to enter a regular hourly rate item into the employee's payroll info, and then the OT item so it will calculate correctly.

This is how you'd do it if you use Salary payroll items. Personally, I don't like the way QB handles salaries - very inflexible. I always convert Salaries to hourly rates and enter everything based on hours. Much simpler that way. But the example above will work as a hybrid between Salary items and Hourly items. Your STAT item could be hourly, for that matter, as well.

Hope that helps.

BBK1 · ‎November 12, 2019

Hi Rochelley,

Really appreciate your detailed breakdown. I don't use timesheets, so will break down an hourly rate for salaried staff. Line for Stat Pay and another using OT Hourly.
Thank you so much,

Rochelley · ‎November 12, 2019

Just keep in mind that if you only have one salary item, the entire salary will go to that item, even if you only put 72 hours in it. If that is the case, then you have to put the entire salary to the salary item (QB will do this automatically), then do a -8 hours for a regular hourly payroll item (in effect you are deducting 8 hours from the regular salary, then add an hourly STAT item for 8 hours. Then add your OT hourly item to cover the overtime. The only reason it splits the salary correctly in my example is because both the regular salary and STAT items are 'salary' items, not hourly. So as soon as you add another salary item, it will reduce the main salary item by the number of hours you are putting to another salary item and adjust the pay accordingly.

Sorry if this sounds confusing!

Topics

Training

Community

Resources

Statutory Pay Salaried Employee day worked