Example of Billing the Overtime Premium as a Cost
You can have Vision calculate overtime when you use the Bill Overtime Premium as Cost method. using the Employee Overtime Percentage method with the Rate Table method.
Specify the Overtime Method on the Labor tab of the Billing Terms form.
The following factors contribute to the calculation of overtime billings:
| Factor | Value |
|---|---|
|
Employee’s cost rate in Employee Info Center |
$40.33 per hour |
|
Overtime Percentage in Employee Info Center |
150% |
|
Regular Hours (Timesheet Posting) |
15 |
|
Overtime Hours (Timesheet Posting) |
3 |
The calculation is:
| Description | Calculation |
|---|---|
|
Overtime Cost |
Cost Rate * Overtime % from Employee Table = $40.33 * 150% = $60.50 |
|
Overtime Premium/Hour |
Overtime Cost - Regular Cost Rate = $60.50 - $40.33 = $20.17 |
|
Initial Billing Calculation |
Total Hours * Billing Rate = 18 * $70.00 = $1,260.00 |
|
Calculation of Overtime Premium |
(Ovt Hours * Ovt Premium/Hour) * Ovt Premium Multiplier = (3 * $20.17) * 1.5 = $90.77 |
|
Total Billing Amount for Employee |
Initial Billing Calculation + Overtime Premium = $1,260.00 + $ 90.77 = $1,350.77 |