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Re: Pay on Units

Piecework for an employee it is pretty easy.    First step, though, is get with the DOL and talk about their requirements.   Then, once you have your pay process written down, get with them a second time to verify that you have it right.     That's a good CYA.

We've been doing piecework successfully for years.  First time around went to a lawyer, who supposedly knew the rules, to get things written up.  That didn't work so well and cost us.   Afterwards we went to DOL to get the straight skinny and haven't had a problem since.  DOL is usually for the employee, but if an employer goes in to make sure they're doing things right, that puts you in a good light.

This may vary by state, but here's how we do it for employees.

When an individual performs any piecework during a week, all their overtime is paid at their piecework overtime (PWOT) rate for that week.
PWOT is paid in addition to the work performed already paid at the ST rate.
PWOT is calculated for each week.
(ST = straight time, OT = overtime, PW = piecework)

1a  Take total of all hourly pay (ST & OT) at ST rate ________
1b  Take total of all piecework pay                           ________
1c   Total the two                                                      ________

2a  Add up all hours worked (ST/OT/PW)                ________   

3a  Divide total hours (2a) into total $ (1c)               ________
      - this gives you your average hourly rate

4a  Divide hourly rate (3a) by 2                                ________
     - this gives you your piecework overtime rate

5a  Take total overtime hours                                 ________
      multiply by (4a)               
5b  - this gives you your overtime pay                     ________

6a   Add (1c) to (5b) for your gross pay for the week  ________

NOTE: This does not include per diem, reimbursements, etc.

We've done an excel spreadsheet for this for each employee, makes payroll much easier.

Payroll taxes are calculated the same whether hourly or piecework

This is posting #382192. Tiny Link:
Posted in reply to: Pay on Units by KGPCOBlueStream
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Re: Pay on Units cadoholdingsllc 1/21/2020 7:32:51 AM