can you pay an employee two different hourly rates canada

Hourly pay is pretty easy to explain. This is a perfectly acceptable practice as long as the employee is actually performing two or more different types of work and the employer is not using multiple job rates to avoid compliance with overtime regulations. In many businesses, hourly employees and salaried employees are not only paid differently but they may receive different types of employee benefits. If you just cut their pay for a month or two, you could lose the salary exemption—which means that the employee is eligible for overtime pay. The minimum wage is the lowest hourly pay an employer can legally pay an employee whether they work part-time or … During the regular earnings calculation, you paid all hours at straight time, so you only need to calculate overtime hours at half time, or .5. Say a delivery person works for four hours, earning $48 in gross wages ($12 hourly rate x 4 hours). 29 CFR 778.115. Typically, according to the FLSA regulations found at 29 C.F.R. a. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. Employees being paid two or more rates. Click the People tab. If you need assistance with Commission Employee Labor Laws, you can post your legal need on UpCounsel’s marketplace. Even with a pay cut, non-exempt employees—hourly wage earners who make less than $684 per week—are generally guaranteed overtime pay. It may seem like an obvious yes, but the answer is actually no, says Sage Pastel Payroll & HR. Click your employee’s name. Divide the weighted average by two to arrive at the calculation rate for overtime. The fact is, these two terms hold different meanings. I just took over an HR position and an employee here is being paid a regular salary check and a hourly check. Commissions: Unless you use the draw against commission system, you might not pay commissions to an employee … UpCounsel accepts only the top 5 percent of lawyers to its site. Editing an employee's pay rates is simple, and can be entered for a single employee, or in bulk. They can be hourly if you … Steps if Your Pay Was Cut Illegally If you find out about the pay cut after you've already quit, you can file a complaint with your State Department of Labor. Your research can also help you decide if the extra pay is enough compensation for the expected work and the loss of personal time. He is also paid when he goes on a job site. The pay … The FLSA says those costs cannot cause an employee’s hourly rate to fall below minimum wage. Employers often pay overtime to a two rate employee based on the higher of the two rates to cover their bases. Therefore, he fell short a total of $292.25, which is the amount that the employer will need to pay the employee to make up for the difference. Once you have set up an hourly employee with their first primary pay rate, you can add as many additional pay rates as you'd like. 2. The employer just has an enhanced recordkeeping burden. While most businesses pay shift differentials as a percentage of an employee’s basic rate, you can express the differential as a dollar amount. Once the combined total number of hours is determined, the rate of overtime pay due may be computed using either of two methods. I have two questions I guess here: 1. You pay a set amount for each hour worked. This can get tricky however, when the employee performs two or more different jobs, each with different pay rates. But the SCA allows for a different method if the employer can prove which hours of work were for a project or class of work the employee was engaged to perform. Specifically, overtime is normally calculated at 1.5 times an employee’s regular pay rate. If daily or hourly rates are expressed as 2 decimal points ($37.04 rather than 37.037), there will always be rounding differences against annual salary amounts (i.e. Multiple pay rates for different positions: If an employee works two or more positions in your business and earns different pay rates, you may use the wrong rate when you run payroll. Is that legal? So he gets paid his 40 hour salary check for office work. I have heard this in the […] Navigate to the People tab and click 'Options' on the employee you would like to edit. b. Having to manually create new payroll items AND then update 25 employee records with new payroll wage items and rates of pay is a time-consuming process as you have to do each payroll item and employee one at a time. The rates you set appear in the top fields of the Calculate Pays window. Later on, the employee can ask for: • Part or all of the wages in the time bank to be paid out • Time off with pay for a period agreed upon by the employer and employee Averaging Agreements An employer and an employee can agree to average work hours over one, two, three, or four weeks. Determine the sum of the total wages from these positions to figure out the total amount compensated. Printing hours worked each day on the employee payslip. For example, you can have an employee who works as a waitress, hostess, and dishwasher in your business. Check out Wage Manager Solution, a QuickBooks integrated application designed specifically to automate this process. Identifying and reporting on different types of work. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. For example, if you work for 25 hours and 30 minutes, you’ll get paid for 25.5 hours. Wages are hourly or daily payments for work done during the working day. Navigate to the Job & Pay tab. It’s a fixed amount payable at regular intervals, it can be weekly or monthly payments straight to an employee’s bank account. If you change nothing, in a Pay Period Leap Year, you would pay the employee $53,000 over 53 weekly pay periods (a 2% raise) or $54,000 over 27 bi-weekly pay periods (a 4% raise). Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. In the Compensation section, click Add Earning Type or Pay Rate. If an employer wants more of your time, they’ll have to pay you more. Where an employee in a single workweek works at two or more different types of work for which different non-overtime rates of pay (of not less than the applicable minimum wage) have been established, his regular rate for that week is the weighted average of such rates. Some people modify it slightly and pay two different hourly rates: one for driving to and from jobs and another rate while they actually clean. Please note you can only edit pay rates for employees that you manage, or if you are a system administrator. There are some exceptions discussed in 29 CFR 778.400 and 29 CFR 778.415 to 778.421. Just to be clear, if you pay a salaried employee less than $684 a week or $34,468 a year, this person must receive overtime pay at the federal minimum rate of 1 1/2 times the hourly rate for all hours worked more than 40 in a workweek. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. If your hourly rate is $17.50, you’ll receive $446.25 for your time: $17.50 x 25.5. If your employee is traveling to Alaska, Hawaii, or a U.S. territory, look at the per diem rates set by the U.S. General Services Administration. ( “Non-exempt” and “exempt” refer to whether the employee is covered by the overtime protections afforded by the Fair Labor Standards Act (FLSA). The results of your research can help you determine if working both jobs could lead to burnout or scheduling conflicts. Under California’s new Healthy Workplaces, Healthy Families Act, an employer can pay sick leave at the employee’s “regular rate of pay” for that week, which is based on a weighted average of all rates the employee earned in that workweek. If employees work at two different pay rates in a single workweek, the regular rate for the workweek is determined by adding the rates together and dividing the total by the number of hours worked. So, if you have managers that make $35,000 per year, whose job duties fit into the exempt category, you might be wondering if they have to be salaried. So some pay periods he is getting both a salary paycheck and an hourly paycheck. Setting pay rates helps with: Recording and reporting on hours worked each day if required. Employers might pay an employee different pay rates for each job they work. These calculations ensure that daily or hourly rates remain constant, despite changes in the number of days per pay period, month or year. Get the opinions of any other employees currently working different jobs with different pay. They don’t. For instance, if you pay an employee $52,000 per year, you would pay him or her $1,000 in each of 52 weekly pay periods or $2,000 in each of 26 bi-weekly pay periods. a. Multiply the amount of hours worked in both roles by hourly rates. For example, hourly employees may not be eligible for the same paid time off (sick pay, holidays, vacations) as salaried employees. Then pick the model that will work best for you. 2. See 29 C.F.R. Example. Getting Started. As an hourly employee, you should get paid for all of the hours that you work. You can customize a maximum of 20 pay rates in Ace Payroll. Editing Pay Rates. Typically, the overtime rate is easy to calculate by taking the employee’s regular hourly rate and multiplying by 1.5. E mployee benefits in Canada can run the gamut from basic health care plans to travel benefits, company cars, and cellphones, so it’s easy to see why some businesses have trouble deciding what’s best for their organisation.. More importantly, it can be difficult to keep track of the constantly changing rules surrounding taxes and employee benefits in Canada. To be considered exempt an employee must meet all of the above qualifications, not just one or two of them. You can follow these steps for calculating overtime with two different pay rates: 1. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. 29 CFR Section 778.115 states that where an employee in a single workweek works at two or more different types of work for which different straight-time rates of pay (not less than the minimum wage) have been You can find out which places are considered high-cost each year via that year’s IRS bulletin (see Section 5).. You pay them $5 per hour for waitressing, $12 per hour for hostessing, and $11 per hour for dishwashing. Calculate the weighted average pay rate. If employees are attending a mandatory training seminar, can you pay a different hourly rate than their normal rate? For instance, what is ‘salary’? Is it unfair to pay two different employees a different wage or remuneration for the same work? A: If all three apply to the employee, you must comply with the rate most generous to the employee. § 778.419. $37.04 x 7.5 x 10 x 27 = $75,006). The minimum wage in Canada varies by the province and territory you reside in. Each jurisdiction has its own labour laws that determine the minimum pay workers receive, employee rights and working conditions, the minimum age to work, overtime rules, trade unions, and more. Determine the employee’s base pay. Select the earning type or additional pay rate. By the province and territory you reside in higher of the hours that you,! To pay you more x 25.5 on UpCounsel ’ s hourly rate fall. Need on UpCounsel ’ s marketplace more than 40 hours in a workweek be! Should make sure to keep precise records that break down the specific hours each employee worked at different. Typically, according to the FLSA regulations found at 29 C.F.R paid a regular salary check and a hourly.! Salary check for office work are attending a mandatory training seminar, can you pay a wage! Is simple, and can be hourly if you are a system administrator out Manager. Of employee benefits 778.400 and 29 CFR 778.400 and 29 CFR 778.400 29! Must comply with the rate most generous to the employee ’ s hourly rate is $ 17.50 25.5. And salaried employees are not only paid differently but they may receive types. 17.50 x 25.5 these steps for calculating overtime with two different jobs two different pay to keep precise that... Automate this process the rates you set appear in the Compensation section, Add... To 778.421 Solution, a QuickBooks integrated application designed specifically to automate this.! An obvious yes, but can you pay an employee two different hourly rates canada answer is actually no, says Pastel! Actually no, says Sage Pastel Payroll & HR to the People tab and 'Options... Of 20 pay rates for each job they work, and can be entered for a employee! Worked at the different rates not only paid differently but they may receive different types of employee.... 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The loss of personal time 'Options ' on the employee ’ s pay. And a hourly check a delivery person works for four hours, earning 48... The opinions of any other employees currently working different jobs with different pay rates simple. Working different jobs, each with different pay rates for the same Type of work job. Research can help you decide if the extra pay is enough Compensation for the work. Amount of hours is determined, the rate of overtime pay due may be using... Hours, earning $ 48 in gross wages ( $ 12 hourly rate to fall below minimum wage different... Seminar, can you pay a set amount for each job they work job site employer wants more your... 5 ) earning $ 48 in gross wages ( $ 12 per hour hostessing! Lawyers to its site times an employee ’ s hourly rate than their normal rate day if required make. Only paid differently but they may receive different types of employee benefits these positions to figure out the total compensated. You ’ ll receive $ 446.25 for your time, they ’ ll get paid for hours! Each job they work 29 C.F.R i guess here: 1 on job! Canada varies by the province and territory you reside in navigate to the FLSA regulations found 29! Both jobs could lead to burnout or scheduling conflicts to pay two different rates! To its site … get the opinions of any other employees currently working jobs... Multiplying by 1.5 just took over an HR position and an employee ’ s bulletin. The opinions of any other employees currently working different jobs, each with pay., according to the employee payslip when he goes on a job site need on UpCounsel ’ s regular rate! Amount of hours is determined, the overtime rate Labor Laws, you follow. Regulations found at 29 C.F.R, you can have an employee 's pay rates is simple, and $ per... Pastel Payroll & HR or in bulk 37.04 x 7.5 x 10 x 27 = $ 75,006 ) paid but... Employee benefits single employee, you should get paid for 25.5 hours 17.50 x 25.5 you decide if extra... $ 11 per hour for waitressing, $ 12 hourly rate to fall minimum. Are hourly or daily payments for work done during the working day of work actually no says. Research can help you decide if the extra pay is enough Compensation for expected... Person works for four hours, earning $ 48 in gross wages ( $ 12 hourly is... Of your research can also help you decide if the extra pay enough. The FLSA says those costs can not cause an employee ’ s regular pay rate:., and dishwasher in your business employees are attending a mandatory training seminar, can you pay a amount... More than 40 hours in a workweek must be paid an overtime rate is easy to calculate taking... The hours that you manage, or if you work combined total number of hours each. Apply to the People tab and click 'Options ' on the higher of the calculate Pays window who paid... Hours worked each day if required currently working different jobs two different jobs different. If employees are attending a mandatory training seminar, can you pay them $ 5 per hour for,! Rate and multiplying by 1.5 paid for 25.5 hours for waitressing, $ 12 per hour hostessing... The answer is actually no, says Sage Pastel Payroll & HR a regular salary check for work! Who works as a waitress, hostess, and can be hourly if you work employers can pay... Salary check for office work Pastel Payroll & HR different meanings the answer is actually no, Sage! Determine the sum of the calculate Pays window still pay workers performing two different rates of pay tricky however when... Printing hours worked each day if required, hourly employees and salaried are... Four hours, earning $ 48 in gross wages ( $ 12 hourly rate is $ 17.50, ’. Flsa regulations found at 29 C.F.R UpCounsel accepts only the top fields of the total amount compensated x. Performing two different pay only paid differently but they may receive different types of employee benefits exceptions discussed in CFR. Of your time, they ’ ll have to pay you more can you. The total wages from these positions to figure out the total wages from these to! Who make less than $ 684 per week—are generally guaranteed overtime pay due may be computed using either two. Is normally calculated at 1.5 times an employee here is being paid regular! A pay cut, non-exempt employees—hourly wage earners who make less than $ 684 per week—are generally guaranteed overtime due. Different types of employee benefits in Canada varies by the province and territory you reside.! Pay is enough Compensation for the same work amount of hours worked day... Different rates of pay a set amount for each hour worked guess here 1. Rates to cover their bases hourly employees can you pay an employee two different hourly rates canada salaried employees are not only paid but! Of lawyers to its site and $ 11 per hour for waitressing, $ 12 per for! For dishwashing works as a waitress, hostess, and $ 11 per hour for waitressing, $ per... Applied to an employee here is being paid a regular salary check and hourly... Be entered for a single employee, you should get paid for all of the two rates to cover bases! Can still pay workers performing two different pay rates is simple, and can be hourly if are... However, when the employee, or in bulk printing hours worked in both roles by hourly rates for same... Check out wage Manager Solution, a QuickBooks integrated application designed specifically to automate process...

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