Topic Thread

Overtime Pay & Job Costing

  • 1.  Overtime Pay & Job Costing

    Posted 01-09-2018 15:15
    I'm looking for suggestions job costing overtime pay.  If we have an employee that is at 3-4 different jobs in a pay period (sometimes 2-3 different jobs in a single day) and accumulates overtime, how would I go about job costing when there's no way to pin point a specific job that put the employee into OT?

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    Diane Graham
    Accounting Manager
    Provost Construction
    Norfolk VA
    (757) 651-3455
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  • 2.  RE: Overtime Pay & Job Costing

    Posted 01-10-2018 06:18
    ​We allocate the overtime to what ever job the employee is on, when the overtime occurs.

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    Ursula Polanowski
    Controller
    Ironshore Contracting LLC
    Linthicum MD
    (443) 552-5732
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  • 3.  RE: Overtime Pay & Job Costing

    Posted 01-10-2018 07:50
    Our Payroll Week runs Saturday - Friday.  If an employee works Saturday and Sunday and has Overtime we charge the OT to the weekend jobs first.  If an employee works 8 hour days Monday to Friday on a certain job but goes over 40 for helping a job that is behind on the weekend, I feel that the job that causes the OT should pay the OT Premium.

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    David Helms CCIFP, CPA
    Controller
    Cullum Mechanical Construction, inc.
    North Charleston SC
    (843) 576-2650
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  • 4.  RE: Overtime Pay & Job Costing

    Posted 01-11-2018 07:20
    I have done it three ways but it generally depends on your pay terms for OT. Either everything over 8 hrs/ day or 40 hrs a week, or if regular hrs are 8-5 everything before 8 and after 5 I.e. Coded first 8 or 40 hrs as regular and the rest as OT to the corresponding jobs. You have to write a policy and stick to the way you elect. How you pay the employee is the way you bill the client to be consistent. If your agreement states that you are paid overtime over 40 hrs then code anything over40. When I had crews 24/7 and 5-6 Jobs a day I used the 8-5 policy, however I paid the employees the same way. This includes travel time.

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    Angel Goldman CCIFP, MBA
    CFO
    Bartlett Brainard Eacott
    Bloomfield CT
    (860) 922-5009
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  • 5.  RE: Overtime Pay & Job Costing

    Posted 01-13-2018 13:10
    ​To keep it simple, we pick a line that matches the number of hours that need to be OT rather than Regular. We try to pick towards the end of the work week, but sometimes the beginning of the work week has a line for the exact hours. Our tracking system is pretty good about catching regular vs OT, but it gets messy when an employee has time from more than one location.  Obviously not the most efficient process so interested in what others are doing as well.

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    Ron Heemstra
    Controller
    Interstates
    Sioux Center IA
    (712) 722-1662
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  • 6.  RE: Overtime Pay & Job Costing

    Posted 01-17-2018 12:30
    Hi - The construction accounting system that I work with most often has a setting where you can choose how you want it allocated.  I believe that no job should be burdened with overtime rate if it is an internal planning decision, as opposed to a customer driven overtime issue.   So, in CE software ( and others), you can set a payroll parameter that will use the average rate for an employee (who has incurred overtime) and spread it across all job entries for that person for that pay period.  Therefore, every job that person was on shares in the overtime burden.
    I hope that helps.  Feel free to reach out of you have other questions.

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    Brigid Huber CPA
    President
    Contractor Strategy Consultants
    Loveland OH
    (513) 910-8542
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