---
title: "Non-Discretionary Bonuses"
slug: "non-discretionary-bonuses-v-25-august"
tags: ["V-25-August Release"]
updated: 2025-08-04T05:03:15Z
published: 2025-08-04T05:03:15Z
canonical: "zenoplesupport.aqore.com/non-discretionary-bonuses-v-25-august"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://zenoplesupport.aqore.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Non-Discretionary Bonuses

Inclusion of Non-Discretionary Bonuses in Weighted Overtime Rate Calculation

This enhancement ensures **non-discretionary weekly bonuses** are included when calculating the **weighted overtime (OT) rate** for employees paid on a weekly basis. The update applies to payroll and billing calculations, aligning with labor regulations requiring such bonuses to be

**Note:** This feature applies only to non-discretionary bonuses paid and earned on a weekly basis. Other scenarios such as bi-weekly are outside this scope.

### Apply Weighted OT Option Property

The **Apply Weighted OT** option property at Company level will be used to determine if the calculation for Weighted OT and Non-Discretionary Bonuses in OT Rate calculation can be done or not. Users will have the following three options:

- None: Calculation not done.
- Pay Rate: Calculation done for Pay Rate only.
- Pay Rate and Bill Rate: Calculation done for both Pay Rate and Bill Rate.

### Calculation Method

#### Payroll Side

- Step 1: Calculate Total Straight Time Pay (including bonus)
  1. Regular earnings (hours × rate)
  2. Non-discretionary bonus (weekly amount)
  3. Total Straight Time Pay = (Regular hours × Regular rate) + Non-Discretionary Bonus
- Step 2: Compute Average (Weighted) Regular Rate
  1. Weighted Regular Rate =
    - Include all hours (regular + overtime) in the denominator per DOL guidance if overtime premium is based on all hours worked.
- Step 3: Overtime Rate
  1. Overtime Premium Rate = Weighted Regular Rate × 0.5
  2. Total Overtime Pay = OT Hours × Overtime Premium Rate
- Step 4: Total Pay with OT
  1. Total Pay = Total Straight Time Pay + Overtime Pay

Example Scenario

| Description | Value |
| --- | --- |
| Regular Hours | 40 |
| Overtime Hours | 10 |
| Hourly Rate | $10.00 |
| Non-Discretionary Bonus (Weekly) | $40.00 |

Total Straight Time Pay: (40+10) hours * $10 = $500

Weighed Rate = $540÷50 hours=$10.80/hr

OT Premium Rate = $10.80×0.5=$5.40

Total OT Pay: 10 hours×($10 base+$5.40 premium)=$154

| Category | Hours | Pay Rate | Total Pay |
| --- | --- | --- | --- |
| Regular Time (RT) | 40 | $10.00 | $400 |
| Overtime (OT) | 10 | $15.40 | $154 |
| Non-Discretionary Bonus | - | - | $40 |
| Total Pay |  |  | $594 |

#### Bill Side Calculation

- Billable Overtime Rate:
  1. Default Approach: Billable OT rates mirror payroll calculations for compliance.
  2. Weighted OT applies: The client's bill is based on the actual premium paid, which includes the share of the non-discretionary bonus.
  3. Bill Rate Example:
    - If client bill OT as (Regular Bill Rate + OT Premium, both calculated from weighted basis), apply the computed weighted OT rate to OT hours.

Example Scenario:

| Category | Hours | Bill Rate | Total Bill |
| --- | --- | --- | --- |
| Regular Time | 40 | $25.00 | $1,000 |
| Overtime (weighted) | 10 | $37.50 | $375 |
| Bonus (if client-billed) | - | - | $50 |
| Total Bill | - | - | $1,425 |