 |
|
PAR System: Example of Percent of Pay Calculation With Overtime
|
|
| |
|
Summary: The following example explains how the Personnel Activity Reporting (PAR) system calculates percent of pay where overtime pay distorts the percentage, and what you need to do to correct it. |
|
PAR system — example of percent of pay calculation with overtime: During the winter 2000 period, an employee was paid for 50% of his time on a federal fund (index DEF0200) and 50% on a non-federal fund (index CBS1234). His base salary was consistent for three months, but he was authorized to work overtime on the non-federal fund.
The PAR system includes overtime pay when calculating percentages. However, when certifying effort, the department should not consider overtime. The following table shows how the PAR system calculates percent of pay:
|
Index |
Fund |
DOS code |
Pay month |
Time base |
Rate |
Gross salary |
| Sponsored projects: |
| DEF0200 |
32200A |
REG |
1/00 |
.50 |
5,000 |
2,500 |
| |
|
REG |
2/00 |
.50 |
5,000 |
2,500 |
| |
|
REG |
3/00 |
.50 |
5,000 |
2,500 |
| Total paid on DEF0200: |
7,500 |
| All other: |
| CBS1234 |
19900A |
OTP |
1/00 |
|
|
2,000 |
| |
|
REG |
1/00 |
.50 |
5,000 |
2,500 |
| |
|
REG |
2/00 |
.50 |
5,000 |
2,500 |
| |
|
REG |
3/00 |
.50 |
5,000 |
2,500 |
| Total paid on CBS1234: |
9,500 |
| Total paid winter 2000: |
17,000 |
The PAR system includes the overtime pay in the calculation. Total pay for this period is $17,000.
The percent of pay is that will be reported on the PAR is 44% for sponsored projects (7,500 divided by 17,000).
The percent of pay that will be reported on the PAR is 56% for all other (9,500 divided by 17,000).
Because of the percentage distortion caused by overtime pay, you need to overwrite the percent of pay as 50% for sponsored projects and 50% for all other on the PAR form.
If the employee worked on the federal fund 50% of the time and on the non-federal fund 50% of the time, the department should certify the percent of effort as 50% and 50%, not 44% and 56% respectively.
Questions? Contact OPAFS.
|
|
|
At Your Service Online
