Non-Discretionary Bonuses

Hi all,

I was wondering how everyone else is processing non-discretionary bonuses for non-exempt employees. According to Infor support there is no program designed to retrospectively calculate overtime for the preceding period that the bonus covers, as required by the FLSA.

We use PR132 but that only includes the bonus in the current pay period. The only way to retro seems to be to split the bonus out and load separate time records for each period that the bonus covers, so for a yearly bonus we would need to load 52 time records instead of just one.

Is this the right approach or does anyone have a better solution? This way doesn't quite work if we have a half-now, half-later deal such as a sign-on bonus, which I'm still trying to find a solution for.

Thanks,
Alex

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Comments

sriman-shivakoti

We do as you described. Sometimes the bonus is not for the full year. We take the bonus and divde it over the number of weeks that is covered and then upload weekly amounts.

unknown

We process bonuses as separate payments and tax at the supplemental rate. The payments are still issued through the regular payroll run; they are given a check group that is set up to only withhold taxes/garnishments. The paycode is set up to tax at the supplemental rate.

pbuckley

We divide the payments over the number of weeks it was earned, which in some cases is 52 weeks. It works good for us, unless the employee's pay plan changed during those 52 weeks. The PR132 calculates according to what their current pay plan is, not what their pay plan was when the original payment was made. We're manually overriding the PR132 calculated overtime in these cases.

deanna-plant

Question about an old post on calculating OT on non-discretionary bonuses... For those of you that are manually splitting out timecards for prior weeks in the year for paying non-discrentionary bonuses, how are you handling the PR132 for those employees who were exempt at time of paying out the bonus?

Also, I would greatly appreciate your vote on Enhancement Request #32156 that requests this functionality so manual calculation does not have to be done outside of Lawson. Please vote!

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