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Retroactive overtime (ROT) is an additional amount of money that is awarded when an employee has a combination of overtime and an additional amount of money, such as a commission or a bonus that is guaranteed based upon work requirements. Overtime is required to qualify for retroactive overtime. So, if a salesperson receives a commission, but does not receive overtime, then the employee does not qualify for retroactive overtime.
Overtime is the amount of time someone works beyond normal working hours. The term is also used for the pay received for this time. Normal hours may be determined in several ways:
Commissions are a form of variable-pay remuneration for services rendered or products sold. Commissions are a common way to motivate and reward salespeople. Commissions can also be designed to encourage specific sales behaviors. For example, commissions may be reduced when granting large discounts. Or commissions may be increased when selling certain products the organization wants to promote. Commissions are usually implemented within the framework on a sales incentive program, which can include one or multiple commission plans.
Performance-related pay or pay for performance, not to be confused with performance-related pay rise, is a salary or wages paid system based on positioning the individual, or team, on their pay band according to how well they perform. Car salesmen or production line workers, for example, may be paid in this way, or through commission.
Retroactive overtime is computed by using the number of hours of overtime worked for the specified payroll period to look up the coefficient percentages from the coefficient table (Form WH-134).This coefficient percentage is then multiplied by the commission and/or bonus to determine the ROT amount that will be awarded to the employee in addition to the already existing overtime and commission.
A payroll is a company's list of its employees, but the term is commonly used to refer to:
The additional amount on money beyond the overtime, the commission or bonus, must be a guaranteed payment to the employee based upon specified work criteria. Here are some examples of some bonuses that qualify and do not qualify.
If an employee is awarded a known amount of money for working a certain shift or for working a number of consecutive weeks, that additional amount of money that is paid beyond the regular base pay and overtime will qualify for retroactive overtime if and only if there are also overtime hours paid during the same pay period of the qualifying bonus. You could also consider this to have an OT value of zero and add an additional look-up table value of all zeros for the percentages to use to determine the ROT amount.
In logic and related fields such as mathematics and philosophy, if and only if is a biconditional logical connective between statements, where either both statements are true or both are false.
If an employee is awarded a discretionary bonus that is not guaranteed based upon specific work criteria, this bonus does not qualify for retroactive overtime. A good example of this is a Christmas bonus that may be awarded to employees. This is not a guaranteed bonus that the employee will receive for meeting a specified goal but is rather a bonus that is awarded to the employee on the discretion of the company.
Christmas is an annual festival commemorating the birth of Jesus Christ, observed on December 25 as a religious and cultural celebration among billions of people around the world. A feast central to the Christian liturgical year, it is preceded by the season of Advent or the Nativity Fast and initiates the season of Christmastide, which historically in the West lasts twelve days and culminates on Twelfth Night; in some traditions, Christmastide includes an octave. Christmas Day is a public holiday in many of the world's nations, is celebrated religiously by a majority of Christians, as well as culturally by many non-Christians, and forms an integral part of the holiday season centered around it.
Employees who work overtime hours experience numerous mental, physical, and social effects. Significant effects include stress, lack of free time, poor work-life balance, and health risks. Employee performance levels could also be lowered. Long work hours could lead to tiredness, fatigue, and lack of attentiveness. As a result, suggestions have been proposed for risk mitigation.
A signing bonus or sign-on bonus is a sum of money paid to a new employee by a company as an incentive to join that company. They are often given as a way of making a compensation package more attractive to the employee. It also lowers the risk to the company as it is a one-time payment; for example, if the employee does not meet expectations, the company has not committed to a higher salary. Signing bonuses are often used in professional sports, and to recruit graduates into their first jobs.
Working time is the period of time that a person spends at paid labor. Unpaid labor such as personal housework or caring for children or pets is not considered part of the working week.
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In European football, the UEFA coefficients are statistics used for ranking and seeding teams in club and international competitions. Introduced in 1979, the coefficients are calculated by UEFA, who administer football within Europe.
The Modified Accelerated Cost Recovery System (MACRS) is the current tax depreciation system in the United States. Under this system, the capitalized cost (basis) of tangible property is recovered over a specified life by annual deductions for depreciation. The lives are specified broadly in the Internal Revenue Code. The Internal Revenue Service (IRS) publishes detailed tables of lives by classes of assets. The deduction for depreciation is computed under one of two methods at the election of the taxpayer, with limitations. See IRS Publication 946 for a 120-page guide to MACRS.
Chinese poker is a card game based on poker hand rankings. It is intended a beginner-friendly game, as only a basic knowledge of poker hand rankings is needed to get started. Additionally, the format allows for frequent unexpected outcomes, so there is a large element of luck involved, therefore a beginner has a good chance of winning in the short term, even against experienced opponents.
Gross income is all a person's receipts and gains from all sources, before any deductions. The adjective "gross", as opposed to "net", generally qualifies a word referring to an amount, value, weight, number, or the like, specifying that necessary deductions have not been taken into account.
Superannuation in Australia are the arrangements put in place by the Government of Australia to encourage people in Australia to accumulate funds to provide them with an income stream when they retire. Superannuation in Australia is partly compulsory, and is further encouraged by tax benefits. The government has set minimum standards for contributions by employees as well as for the management of superannuation funds. It is compulsory for employers to make superannuation contributions for their employees on top of the employees' wages and salaries. The employer contribution rate has been 9.5% since 1 July 2014, and as of 2015, was planned to increase gradually from 2021 to 12% in 2025. People are also encouraged to supplement compulsory superannuation contributions with voluntary contributions, including diverting their wages or salary income into superannuation contributions under so-called salary sacrifice arrangements.
A severance package is pay and benefits employees receive when they leave employment at a company unwillfully. In addition to their remaining regular pay, it may include some of the following:
United States Military Pay is money paid to members in the United States Armed Forces. The amount of pay may vary by the member's rank, time in the military, location duty assignment, and by some special skills the member may have.
A life annuity is an annuity, or series of payments at fixed intervals, paid while the purchaser is alive. A life annuity is an insurance product typically sold or issued by life insurance companies. Life annuities may be sold in exchange for the immediate payment of a lump sum or a series of regular payments, prior to the onset of the annuity.
When two or more individuals engage in enterprise as co-owners, the organization is known as a partnership. This form of organization is popular among personal service enterprises, as well as in the legal and public accounting professions. The important features of and accounting procedures for partnerships are discussed and illustrated below.
In the United States, the question whether any compensation plan is qualified or non-qualified is primarily a question of taxation under the Internal Revenue Code (IRC). Any business prefers to deduct its expenses from its income, which will reduce the income subject to taxation. Expenses which are deductible ("qualified") have satisfied tests required by the IRC. Expenses which do not satisfy those tests ("non-qualified") are not deductible; even though the business has incurred the expense, the amount of that expenditure remains as part of taxable income. In most situations, any business will attempt to satisfy the requirements so that its expenditures are deductible business expenses.
The Fair Labor Standards Act of 1938 29 U.S.C. § 203 (FLSA) is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor". It applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless the employer can claim an exemption from coverage.
A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum or combination thereof on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provided defined benefit plans, sometimes as a means of compensating workers in lieu of increased pay.
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Compensation and benefits (C&B) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making. While compensation and benefits are tangible, there are intangible rewards such as recognition, work-life and development. Combined, these are referred to as total rewards. The term "compensation and benefits" refers to the discipline as well as the rewards themselves.
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Cost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa. It indicates the total amount of expenses an employer (organization) spends on an employee during one year. It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period. If an employee's salary is ₹50,000 and the company pays an additional ₹5,000 for their health insurance, the CTC is ₹55,000. Employees may not directly receive the CTC amount.