contractor wife
New Member
Advice
Use a certified payroll company. Overtime mistakes can cost you your contract.
IE: You pay a driver 15/hr. x 2080 hrs = 31200/yr. You would think that OT pay would be 15 x 1.5 or 22.50/hr.
However if you have been paying out regular safety and/or service bonuses to your employees you MUST figure that compensation into the hourly wage:
Example: Your employees regularly earn an average of 200/month in safety bonus. They don't always get it, but for 10 months they do. You must consider the additional 2000.00 in their hourly pay. 31200 +2000 = $33200/2080 = 15.96/hr
Overtime MUST be paid at 15.96 x 1.5 or 23.94/hr. If you fail to do this then your are in violation of your contractual obligations as a FedEx ISP contractor.
Few ISP providers that do their own payroll will figure OT correctly if they are paying regular bonuses. BE CAREFUL and use a certified payroll company.
Use a certified payroll company. Overtime mistakes can cost you your contract.
IE: You pay a driver 15/hr. x 2080 hrs = 31200/yr. You would think that OT pay would be 15 x 1.5 or 22.50/hr.
However if you have been paying out regular safety and/or service bonuses to your employees you MUST figure that compensation into the hourly wage:
Example: Your employees regularly earn an average of 200/month in safety bonus. They don't always get it, but for 10 months they do. You must consider the additional 2000.00 in their hourly pay. 31200 +2000 = $33200/2080 = 15.96/hr
Overtime MUST be paid at 15.96 x 1.5 or 23.94/hr. If you fail to do this then your are in violation of your contractual obligations as a FedEx ISP contractor.
Few ISP providers that do their own payroll will figure OT correctly if they are paying regular bonuses. BE CAREFUL and use a certified payroll company.