If you have a nondiscretionary bonus plan that is awarded to nonexempt employees at intervals greater than each week (for example, on a quarterly, semiannual or annual basis), you are required to retroactively calculate the bonus into the employee’s “regular rate” of pay.
You’re also required to pay additional overtime and double-time wages to include the bonus amount for each overtime and double-time hour worked.
But how to go about this? Paying Overtime on Bonuses: A Calculation Guide explains, step by step, how to do the math for both incentive-based and non-incentive-based bonuses.
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