Example - Employee's Overtime Percent and Rate Times Multiplier Method

You can have DPS calculate overtime using the Employee Overtime Percentage method with the Rate Times Multiplier method.

Specify the Overtime Method and Labor Method on the Labor tab of the Billing Terms form.

The employee’s regular and overtime cost rates are based on the Job Cost Rate (as defined in the Employee hub) and a markup of this amount as specified in the first multiplier field on the Labor tab of the Billing Terms form for this project. Any additional multipliers are applied to the labor total.

The following factors contribute to the calculation of overtime billings:

Factor Value

Employee’s cost rate in Employee hub

$40.33

Overtime Percentage in Employee hub

150%

Multiplier 1

1.3

Multiplier 2

1.7

Regular Hours (Timesheet Posting)

15

The calculation is as follows:

Description Calculation

Regular Cost Rate

Cost Rate * Multiplier 1

= $40.33 * 1.3

= $52.43

Overtime Cost Rate

Regular Cost Rate * Overtime Multiplier from Billing Terms

= $52.43 * 150%

= $78.65

Extended Regular and Overtime Charges

(Reg Cost Rate * Reg Hours) + (Ovt Cost Rate * Ovt Hours)

= ($52.43 * 15) + ($78.65 * 3)

= $786.45 + 235.95

= $1,022.40

Total Billing Amount for Employee

Extended Regular and Overtime Charges * Multiplier 2

= $1,022.40 * 1.7

= $1,738.08