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Overtime

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Follow this guide to add Overtime Pay Definitions.

Overview #

There are two options, depending on whether the overtime rates are based on a salary or independent (no salary).

Furthermore, you can either:

  • Enter 2 values: Rate x Hours/ Days using the Per unit Pay Template or
  • Enter 3 values: Rate x Multiplier x Hours/ Days using the Salary Overtime Pay Template

Annual salary with linked overtime #

Ensure the worker has a Salary Pay Item and enter the annual salary in Base Salary.

Setup > Pay Definitions > Add to create a Salary Overtime Pay Definition:

Next, go to the Pay Item editor, search/select the employee, then select the required Pay Definition in the Create Pay Item selector to create the pay item for the employee.

This Pay Item will use the annual salary, divided by the Salary Scheme Annual hours, to compute an hourly rate that automatically changes when the annual salary changes. You only need to enter the Hours and Multiplier.

Overtime (no salary) #

Two Inputs: Base Rate and Hours #

If you need multiple rates, e.g. Overtime 1, Overtime 1.5 and Overtime 2, then the simplest method is to create new Pay Definitions based on the Per Unit Template named appropriately:

Next, go to the Pay Item editor, search/select the employee, then select the required Pay Definition in the Create Pay Item selector to create the pay item for the employee.

As there are only 2 input values and no multiplier, you will enter the multiplied rate or multiplied hours.

Repeat and add as many Pay Definitions as needed, ensuring that each has a unique name.

Three inputs: Rate, Multiplier and Hours #

If you prefer to enter three input values (Base rate, Hours, and Multiplier), then create a new Pay Definition based on a modified Salary Overtime Template (note that salary is not used or required).

Setup > Pay Definitions> Add… as below:

Next, go to the Pay Item editor, search/select the employee, then select the required Pay Definition in the Create Pay Item selector to create the pay item for the employee.

You will now have a single Overtime Pay Definition where you can provide 3 inputs: Base (rate), Hours and Multiplier.

If any worker requires multiple overtime rates, then add more Pay Definitions, each with a unique name, e.g. Overtime 1, Overtime 2, etc.

Days instead of Hours #

You can easily create Overtime Pay Definitions using Days rather than Hours. Follow the steps above, but change the Hours input name to Days. Don’t forget to edit the Display as code accordingly.

When you are adding a salary-based Overtime, you will need to change the Base input Source to buss: Daily rate so that the system automatically computes the daily rate:

Future #

If you have employees with different hours, use multiple Salary schemes. In a future release, you can enter an FTE in the employee work pattern.

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