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Multiple pay rates & Gusto Time Tracking

If you're using Gusto Time Tracking and have employees with multiple pay rates, wage calculations and hours worked at each rate can sometimes be difficult to visualize and understand.

Review the table below and explanations beneath it to learn more about how this works in Gusto.

Important: Hours for employees with multiple pay rates are tracked on a per workweek basis. When reviewing the table, only compare to one workweek's worth of hours, not the total hours from a pay period.

Column A Column B
What multiple pay rates looks like in Time Tracking  What multiple pay rates looks like in the run payroll flow 

 

Rate 1: $10/hr

  • Total hours: 20

 

Rate 2: $15/hr

  • Total hours: 30

 

Total hours earned at overtime*

  • Overtime hours: 5

 

Total hours earned at double overtime*

  • Double overtime hours: 5

 

*Hours earned at overtime/double overtime of the toal 50 hours worked.

 

Rate 1: $10/hr

  • Regular hours: 16
  • Overtime hours: 2
    • Reference: Explanation A
  • Double overtime hours: 2 
    • Reference: Explanation B

 

Rate 2: $15/hr

  • Regular hours: 24
  • Overtime hours: 3
    • Reference: Explanation C
  • Double overtime hours: 3
    • Reference: Explanation D

 

Total hours confirmation

  • 50
    • Reference: Explanation E

Explanations for Column B

A: Overtime hours at Rate 1

Use the ratio of hours worked at each rate to allocate across rates. Inputs come from Column A.

  • The equation: {(Hours at Rate 1) / [(Hours at Rate 1) + (Hours at Rate 2)]} x Total overtime hours
  • The math: [20 / (20 + 30)] x 5 = 2 hours

B: Double overtime hours at Rate 1

Use the ratio of hours worked at each rate to allocate across rates. Inputs come from Column A.

  • The equation: {(Hours at Rate 1) / [(Hours at Rate 1) + (Hours at Rate 2)]} x Total double overtime hours
  • The math: [20 / (20 + 30)] x 5 = 2 hours

C: Overtime hours at Rate 2

To avoid rounding issues, take the difference between total overtime hours (column A) and the overtime hours allocated for Rate 1 (column B). The remainder is allocated to Rate 2.

  • The equation: (Total overtime hours) - (Overtime hours at Rate 1)
  • The math: 5 - 2 = 3 hours

D: Double overtime hours at Rate 2

To avoid rounding issues, take the difference between total double overtime hours (column A) and the double overtime hours allocated for Rate 1 (column B). The remainder is allocated to Rate 2.

  • The equation: (Total double overtime hours) - (Double overtime hours at Rate 2)
  • The math: 5 - 2 = 3 hours

E: Total hours confirmation

Inputs come from Column B.

  • The equation: (Regular hours at Rate 2) + (Overtime hours at Rate 1) + (Double overtime hours at Rate 1) + (Regular hours at Rate 2)+ (Overtime hours at Rate 2) + (Double overtime hours at Rate 2)

  • The math: 16 + 2 + 2 + 24 + 3 + 3 = 50 hours

 

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