By Steve Kania, Vice President of Product Management, SurePayroll As we continue our discussion on overtime pay this month, we should explore what exactly a workweek consists of – that is, a fixed, recurring period of 168 consecutive hours (7 days, 24 hours).
A given business’s workweek does not have to be the same as a calendar week or a payroll period. A workweek can begin on any day and any hour but must end after 168 hours. A business can also have an established workweek for the whole company or different workweeks for different groups within the organization.
To parse it even further, accountants should understand that a workweek exist on its own. In other words, if an employee works 37 hours in one week and 64 in the next week, regardless of the length of the pay period or pay frequency, overtime would be calculated only for the week in which they worked over 40 hours, in this case the second week where the employee worked 24 hours of overtime.
Actually paying the overtime is calculated using the employee’s regular rate of pay, which we will cover in my next post.