# How is pay calculated?

A user’s pay is based on their pay rates, the time they enter, and the pay codes associated with that time.

To begin, each user enters their time. The user’s assigned overtime rule or pay rule then determines how the time is allocated to pay codes. For example, a user’s overtime rule or pay rule might specify:

• The first 8 hours of a day are assigned the Regular Time pay code
• Any additional hours are marked with the Time and a Half pay code

Each pay code includes a multiplier, which defines the multiple to apply to the user’s base hourly rate for those hours. For example, the Time and a Half pay code has a multiplier of 1.5. If a user has 4 hours assigned to that pay code and their base hourly rate is \$20.00, their pay for those 4 hours would be \$120.00.

## Example pay calculation

The user’s overtime rule or pay rule specifies:

• The first 40 hours in the week are assigned the Regular Time pay code
• Hours above 40 and below 44 are marked with the Time and a Half pay code
• Hours above 44 are marked with the Double Time pay code

The user enters 46 hours for the week. Based on the overtime rule or pay rule, the hours for each pay code are:

• Regular Time = 40 hours
• Time and a Half = 4 hours
• Double Time = 2 hours

The user’s base payroll rate is \$20.00. His total pay is \$1000.00, calculated as follows:

• 40 hours x \$20.00 = \$800.00
• 4 hours x \$20.00 x 1.5 = \$120.00
• 2 hours x \$20.00 x 2.0 = \$80.00