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Calculating overtime with bonus

BmarrsBmarrs 9 Posts
in Compensation Vote Up0Vote Down
I understand that for non-exempt persons, any "earned" bonuses that are paid need to be added into the base wage prior to calculating overtime. I've even seen a calculation on it in a magazine so I've created a spreadsheet on it. However, I can find nothing on the IRS site on this subject. I want to find something that tells how one differentiates discretionary from non discretionary bonues or earned from non earned or whatever we should call it. Maybe we shouldn't even call them bonues...but you know what I mean - extra money in addtion to regular pay. Sorry if it's already on your web site. I couldn't find it.
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  • ShadowfaxShadowfax 910 Posts
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    [font size="1" color="#FF0000"]LAST EDITED ON 03-29-05 AT 06:15AM (CST)[/font][br][br]You are looking for 29 CFR 207(e)(3)(a) and 778.211 for discretinary bonus; and 207(e)(1) and 778.212 for non discretionary bonuses. You will also find deductions can be made to arrive aat the proper rate at 218 to 222.
    I just noticed yousaid you were looking at the IRS site - you need DOL.
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