Welcome to the SPO Regular Rate of Pay Calculator

Properly paying nonexempt (typically hourly) employees multiple pay rates or additional types of pay can be cumbersome.

State and/or Federal regulations require that employers calculate a “Regular Rate of Pay,” which is sometimes referred to as a “blended rate” or a “weighted average.” This rate is used for calculating the appropriate Overtime and Double time rates and, in California, for determining the "Regular Rate of Pay" when paying Missed Meal and Rest Period Penalties, Reporting Pay, and CA Paid Sick Leave.

To make it even more difficult, additional types of pay are broken into two categories:

• Flat Sum Bonuses:  A fixed additional payment not based on variable factors such as the number of hours worked or production. Example: an attendance or store-opening bonus.
• Production Bonuses/Commission:  Additional payment based on variable performance factors that meet or exceed specific targets. Example: a bonus for building more widgets in a month than expected.

Each of these has a different calculation to determine the Regular Rate of Pay. And, if these amounts are earned over more than one pay period, a True-Up calculation is required to determine how much extra the employee earned for each pay period as it applies to Overtime, Double Time, Meal and Rest Period Penalties, CA Paid Sick Leave, and Reporting Pay.

These demands are difficult to manage, and employers must stay abreast of changes in order to protect their company from costly wage and hour claims. We have created two types of calculators to simplify the process of calculating pay.

*DISCLAIMER - SinglePoint Outsourcing, Inc. (SPO) has developed this online calculator to incorporate multiple rates of pay (not including prevailing wage rate or piece-rate compensation) and/or incentive compensation in the calculation of employee regular rates for purposes of overtime wage calculation (hereinafter “Blended Rate Functionality”). However, the output of the Blended Rate Functionality must be quality-checked by each client due to variables that may affect accuracy. The client agrees to perform adequate quality control to ensure employee compensation is accurate. In the event a client’s use of Blended Rate Functionality results in an underpayment or overpayment of wages or other failure to comply with applicable laws, the client will indemnify, defend, and hold SPO harmless pursuant to the Client Service Agreement. The client’s use of Blended Rate Functionality and other SPO payroll systems does not relieve the client of its obligation to ensure hourly rates are correctly programmed and accurately reflected on wage statements. The client agrees to issue supplemental wage statements to employees if SPO’s standard wage statement format does not accommodate unique compensation systems. In the event of a conflict between this Disclaimer and the other terms of the Client Service Agreement, this Disclaimer shall control. In all other respects, the Client Service Agreement remains in effect as written.