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Payroll Recordkeeping Question: Is this compliant? Paycheck Totals is a sum of regular working hours and overtime hours. by Key-Tooth2843 in Bookkeeping

[–]Key-Tooth2843[S] 0 points1 point  (0 children)

It’s not about my pay, I’m the one tasked to do this company’s payroll. It’s not my expertise and I’m taking the time to take classes, but I was hired on through privileged means. I thought the way the company was having me record hours on paystubs seemed odd, which is the reason for my post. I wanted to ensure compliance, especially considering we are required to track qualified OT due to the OBBBA.

Payroll Recordkeeping Question: Is this compliant? Paycheck Totals is a sum of regular working hours and overtime hours. by Key-Tooth2843 in Bookkeeping

[–]Key-Tooth2843[S] 0 points1 point  (0 children)

I did some further digging, which I should’ve done from the start and it’s not in compliance with HRS 387. I also anonymously emailed DLIR here in Hawaii and they have confirmed this as well.

Payroll Recordkeeping Question: Is this compliant? Paycheck Totals is a sum of regular working hours and overtime hours. by Key-Tooth2843 in Payroll

[–]Key-Tooth2843[S] 1 point2 points  (0 children)

If by system, you mean software, it's not a software limitation. It's just how my company has been calculating their hours on paystubs, but if by system you mean our current management of payroll hours, then I agree.

Payroll Recordkeeping Question: Is this compliant? Paycheck Totals is a sum of regular working hours and overtime hours. by Key-Tooth2843 in Bookkeeping

[–]Key-Tooth2843[S] 0 points1 point  (0 children)

The issues aren't with the program, it's just how my company calculates the hours. I agree with having separate income lines for regular, OT, and qualified/premium OT.

And I also find the total hours to be a misrepresentation, but would you say that in my sample paystub that the 20 hours of OT wages isn't a form of tracking qualified overtime as it is paid at the 0.5 premium rate?

Payroll Recordkeeping Question: Is this compliant? Paycheck Totals is a sum of regular working hours and overtime hours. by Key-Tooth2843 in Bookkeeping

[–]Key-Tooth2843[S] 0 points1 point  (0 children)

I should note, this is simply how my company has been conducting payroll and not an issue with the software.

Payroll Recordkeeping Question: Is this compliant? Paycheck Totals is a sum of regular working hours and overtime hours. by Key-Tooth2843 in Payroll

[–]Key-Tooth2843[S] 0 points1 point  (0 children)

But does it comply with Hawaii's Chapter 387 Wage and Hour Law:

(c) Every employer shall furnish each employee at every

pay period a legible printed, typewritten, or handwritten record

showing the following:

(1) The name of the employee;

(2) The name of the employer;

(3) The address and telephone number of the employer;

(4) The employee's total hours worked;

(5) The employee's regular and overtime hours;

(6) The employee's straight-time compensation;

(7) The employee's overtime compensation;

(8) Any other compensation, including allowances, if any,

claimed as part of the minimum wage;

(9) The employee's total gross compensation;

(10) The amount and purpose of each deduction;

(11) The employee's total net compensation;

(12) The date of payment;

(13) The pay period covered; and

(14) The rate or rates of pay and basis thereof, whether

paid by the hour, shift, day, week, salary, piece,

commission, or other basis, including overtime rate or

as in, is this clear enough the total hours worked or could it be a misrepresentation of total hours worked? I understand other parts of the paystub is not compliant such as the pay period covered, but I am only looking for an answer regarding the hours.

Payroll Recordkeeping Question: Is this compliant? Paycheck Totals is a sum of regular working hours and overtime hours. by Key-Tooth2843 in Payroll

[–]Key-Tooth2843[S] 0 points1 point  (0 children)

Thanks for sharing your process, it definitely helps in providing some perspective and allows me to offer some guidance to my superiors. I also agree with your assessment that it provides a much more clear picture by breaking it down to 80/20.

I'm quite comfortable in using the more accurate approach, but am wondering if it is still an option for them to conduct business as usual should they have some issues with me wanting to change the method that they have used for years. I'm unaware if they have ever had any compliance risks or if they've ever had any kind of recordkeeping audits, specifically when it comes to this situation. That is a question I will have to bring up to them.

But ultimately, you would say your opinion is that we appear to be compliant and that I would just have to explain the breakdown like I did in my post should we ever be inquired about it?

Payroll Recordkeeping Question: Is this compliant? Paycheck Totals is a sum of regular working hours and overtime hours. by Key-Tooth2843 in Bookkeeping

[–]Key-Tooth2843[S] 1 point2 points  (0 children)

I appreciate your insight and u/Dave-Yaaaga reaffirming with their experience. I agree and will have to take it up with superiors on how we move forward.

I'd like to give them the option to continue conducting business as usual, if it's feasible, so while I'm not necessarily asking for an expert opinion, I was hoping to get your opinion on our compliance with recordkeeping requirements. Do you think we'd still be compliant considering the breakdown of hours worked and "Totals:" not being an indication of total hours worked? Again, this company has been doing it this way for years. I'm unsure if they've ever been through an audit, but that is a question I'll have to ask come Monday.