How Payroll Shift Differentials Are Calculated

Here is a breakdown of how payroll shift differentials are calculated in LifeCare Plus. In this example, the following are true:

• Rate of pay = $10.00/ hr
• Overtime = $15.00/ hr ($10.00 x 1.5)
• Shift differential = $0.50/ hr

Straight pay - NO shift differential
• 8 regular hours = $10 x 8 hrs = $80.00
• 2 overtime hours = $15 x 2 hrs = $30.00
• Total = $110.00

Shift differential calculated as part of regular pay
• 8 regular hours with shift diff = ($10.00 + $0.50) x 8 hrs = $84.00
• 2 overtime hours with shift diff = ($10.00 + $0.50) x 1.5 x 2 = $31.50
• OR [($10.00 x 1.5) + ($0.50 x 1.5)] x 2 = $31.50
• Total = $115.50

Shift differential NOT calculated as part of regular pay
• 8 regular hours = $10.00 x 8 hrs = $80.00
• 2 overtime hours = $15.00 x 2 hrs = $30.00
• Shift differential = $0.50 x 10 hrs = $5.00
• Total = $115.00

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