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Deadwood Al
Level 5

Work Comp - "Excluding Overtime" =

Just read through some QB "help" documents on setting up Work Comp tracking, and, like usual, still have some questions: mostly having to do with excluding work comp calculations on the overtime premium, and related. In addition to the  usual responses from QB employees, I'd really like to hear from people like @Big Red Consulting. 

 

First question:  I am used to a work comp treatment of overtime as follows: The 'per hundred" rate applies to all straight time earnings a person has. If the employee also works overtime hours, the rate applies to the straight-time portion of the overtime pay but not to the premium portion. As example, if someone was paid $10.00 / hr 40 hrs for straight time and $15.00 / hr for 10 hrs of overtime (1.5 x straight time), their earnings would be $550.00. Work comp calculations would be on $500 (on the 40 hrs straight time and on the straight time portion of the 10 hrs overtime). Work comp would not calculate on the $50 of premium pay.

 

Is that what QB Exclude overtime does? Or does QB Exclude overtime calculate only on the 40 hrs of regular pay?

 

Second question:   What about other types if payment?

* Holiday pay (for not working on a holiday) at straight-time rate?

* Holiday pay (for working on a holiday) at overtime rate?

* PTO pay (straight time)

* Jury duty, Bereavement, Vacation, Sick? (all at straight time)

 

Third Question:   Some states (like CA) mandate both overtime (1.5 rate) and double-time (2x rate) based upon number of hours worked and number of consecutive dates in work week that are worked. Does QB address that?

 

Fourth question:    Why doesn't Intuit / QB address all this in the help screens and documents?

 

 

1 Comment 1
Kevin_C
QuickBooks Team

Work Comp - "Excluding Overtime" =

Thank you for your continued engagement in the Community forum, Deadwood Al. I'm here to address your concerns about how workers' compensation calculations work in QuickBooks Desktop (QBDT).

 

For your first concern, you're correct that QuickBooks will exclude the overtime premium portion of your employees' pay if you have selected the Exclude overtime premium from Workers Comp calculation checkbox from the Preferences. Otherwise, the workers' comp will be calculated based on the entire payroll if it's not checked.

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Regarding your second question, QuickBooks will still calculate the same for all hourly payroll items, including the holiday at a straight-time rate, PTO pay, jury duty, bereavement, vacation, and sick pay types, but not the holiday pay with the overtime rate.

 

Concerning the third question, you can simply select the correct overtime payroll item so that QuickBooks will calculate it accurately. You'll want to add the two overtime payroll items to your company or add them to your CA employees' profiles. Then, you can choose the correct one when running their payrolls, depending on their work hours.

image.png

 

For your last question, I encourage you to submit feedback to that specific help article to specifically request further explanation about the exclusion process of overtime premiums from workers' compensation calculations. Let me guide you on how:

 

  1. Open the specific help article.
  2. Scroll down to the bottom and select the No button under Was this helpful?
  3. Pick your reason or choose the Something Else option, and enter a brief description of your feedback. 
  4. After that, click Submit.

 

Additionally, you can visit these resources in case you encounter some issues with your workers' comp reports or if you need to pay your workers' comp premiums:

 

 

I'm always around and ready if you need further assistance or have additional questions about workers' compensation calculations in QBDT. Just let me know by leaving a reply below.

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