What does Overtime Surcharge mean? Read on to discover the definition & meaning of the term Overtime Surcharge - to help you better understand the language used in insurance policies.
Extra pay for overtime hours worked by employees. When an employee works overtime, many firms pay them time and a half or double time for the overage worked. States govern how the additional payroll charge is handled for the computation of workers compensation premium. Normally, the only payroll that goes into a workers compensation premium calculation is the basic rate of pay per hour. Any additional compensation for overtime worked in excess of the regular hourly rate, subject to state-specific exceptions, is deleted from the payroll when computing workers compensation premiums.
We hope the you have a better understanding of the meaning of Overtime Surcharge.