The Ins and Outs of Employee Bonuses

In this episode, we give managers payroll heartburn over bonuses and commission payments. Did you know that bonuses and commissions affect hourly wages and cause the need to adjust past pay for overtime?

“What I need you to know, and this is the mindblowing part, is that when an employee works the first quarter of a year and earns a bonus or commission at the end of that quarter if they have worked any overtime during that first quarter where the bonus was subject to -  YOU  have to go back and look at the overtime hours and add that bonus into the overtime hours. You owe them more money. Not only do you owe the commission/bonus, but now that you know how much they earned, you need to go back and adjust their overtime pay.”