I have a couple of questions regarding the payroll for two of my project’s wrap-ups. I have a project in New Jersey where one of my contractors is working second shift during the weekdays, and he is paying his employees at a rate of 15% above their normal pay rate. Shouldn’t this payroll be classified as overtime and reported at the straight time rate for the purposes of a wrap-up? I also have a project in Pennsylvania where my contractors are reporting overtime pay at the overtime rate. Is this correct?

Ronnie from West Chester, Pennsylvania

Thanks for the detailed payroll questions.  Payroll reporting rules can vary from state to state.  In regards to the contractor in New Jersey, his second shift pay should be reported at the second shift rate as it does not fall under the New Jersey Compensation Rating & Inspection Bureau’s definition for overtime.   Please see below section 3:3-33 C of NJCRIB’s manual for 2011.

(C) For the purpose of this rule “Overtime” shall mean those hours worked for which there is an increase in the rate of pay.

(i) For work in any day or in any week in excess of the number of hours normally worked but in any event for hours worked in excess of eight hours in any day or forty hours in any week,
(ii) For work performed on Saturdays, Sundays, or holidays.

In regards to your contractors in Pennsylvania, your contractors should be reporting their overtime pay at their overtime rate per the Pennsylvania Compensation Rating Bureau manual for 2011. In the state of Pennsylvania, all overtime pay should be reported to the carrier.
For additional information on the rules and regulations regarding payroll reporting, you can visit these websites:

Pennsylvania Ratings Compensation Bureau www.pcrb.com

New Jersey Compensation Ratings & Inspection Compensation Bureau is www.njcrib.com

I hope these explanations help.

Steven Petonic, Account Manager