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My WH-347 Certified Payroll Reports Expired 12/31/11 - Now What?

The current U.S. Department of Labor WH-347 Certified Payroll Report expired on 12/31/2011.  Don't worry - you can continue to use that form until the new one is released!

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How is Weighted-Average Overtime Calculated?

Weighted-average overtime is calculated using the following 4-step mathematical equation:

  1. All hours are treated as straight time (ST) and the hours are multiplied by the ST rate of pay to determine TOTAL A
  2. TOTAL A is then divided by the total hours worked in the week and then divided by 2 to determine RATE B
  3. RATE B is multiplied by the number of hours over 40 to determine TOTAL C
  4. TOTAL A plus TOTAL C = weighted average gross pay.

An expanded example:  Joe works 25 hours at $10.00/ph and 25 hours at $12.00/ph for a total of 50 hours in the workweek.  10 hours of overtime are calculated.

  1. (25 hours x $10.00) $250.00 + (25 hours x $12.00) $300.00 = $550.00
  2. $550.00 divided by 50 hours = $11.00 divided by 2 = $5.50
  3. $5.50 x 10 hours = $55.00
  4. $550.00+ $55.00 = $605.00 weighted average gross pay

 

Next FAQ -->  What States Require Weighted-Average Overtime?


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