5.10: Employees Earning Additional Wages and/or Hours


Additional wages for extra work

Frequently, your contract and salaried employees perform extra work and receive additional wages for it. Coaches or teaching night school are good examples. These additional wages must be reported with hours.

Category Full-Time (FT) Part-Time (PT)
Additional wages for extra work. Hours associated with extra work. Hours associated with extra work.
For example: A bus driver with regular runs during a pay period also has two additional trip runs at a different rate. You would report one DTL2 record with all regular run wages and hours using employment class code 1610. You then report a second DTL2 record with the additional trip wages and hours using employment class code 9510.
A teacher who also coaches could have one DTL2 record using employment class code 1240 to report all teaching wages and hours. A second DTL2 record using employment class code 1560 would be submitted to report all coaching wages and hours.
 

Uncompensated extra work

You may have some employees who work additional hours as part of their job, but they don’t receive extra wages.

Category Full-Time (FT) Part-Time (PT)
Uncompensated work Additional hours not reported. Additional hours not reported.

For example: A salaried, 40-hour-per-week principal attends mandatory evening or weekend meetings. You will not report additional hours because the duties are a part of the principal’s position and do not require additional pay.

Lump-sum payments for extra work

When your employees are paid a lump-sum amount for teaching a class, coaches, or for any other legitimate extra service, you need to calculate an equated number of hours to be reported. If the extra work is similar in difficulty or responsibility to their regular work, use the regular hourly rate of pay and divide it into the lump sum amount to find the equated hours worked. If the extra work is different from the employees’ regular work, use an hourly pay rate for similar work within your reporting unit and divide it into the lump sum amount to calculate the equated hours worked.

Reportable hours = lump sum payment ÷ hourly rate
 

Category Full-Time (FT) Part-Time (PT)
Lump sum wages for extra work. Lump sum ÷ equated hourly rate. Lump sum ÷ equated hourly rate.

For example: Your reporting unit has a seasonal coach who is paid a lump sum of $2,100 at the end of the season. To determine how many hours should be reported for this coach, you will need to determine an hourly pay rate similar to that of a teacher with a bachelor’s degree. So, let’s say that the contract amount for a teacher is $24,000 per year. Divide that by hours a teacher would normally work - 6 hours per day for 200 days, or 1,200 hours. Now divide 1,200 hours into the annual teacher contract amount of $24,000 to get an hourly pay rate of $20.00. Divide the hourly rate of $20.00 into the lump sum coaching payment of $2,100 to get 102 reportable coaches hours.

Lump sum payments for extra work performed in a prior pay period

When you pay an employee in a lump sum for work that was performed in a prior period, you should report both the hours and wages using a positive adjustment.

Category Full-Time (FT) Part-Time (PT)
Lump sum wages for extra work in prior pay period. Lump sum ÷ equated hourly rate. Lump sum ÷ equated hourly rate.

Last updated: 04/13/2012