(FOR EMPLOYEES PROCESSED THROUGH TIME ENTRY)
There are 3 options for how to manage overtime for employees processed using Time entry. Follow the steps below for your chosen method.
Option 1 – Let the software control overtime on a day-to-day basis
Max Daily Hrs – This field determines how many hours will be paid at normal rate before converting to Overtime. You would use this option for employees that work a consistent 8 hour day.
The default software setting for this field is 8hrs for Full time and Part time employees and 12hrs for Casuals.
Option 2 – User managed Weekly Overtime
Use this method for employees that have a fixed 38hr roster or are consistently working in excess of 38 hours
Navigate to Employees then select the Employee to be changed.
- Select Award
- Select Earnings
When using the weekly method all hours over 38 need to be paid as Overtime. Use the Rostered Hours column to convert normal hours to Overtime.
In the last day of the week enter the number of normal hours to be paid for that day.
See example below –
- Total Worked hours = 40 meaning 2 hrs overtime is due. If total hours worked for the last day = 8 enter 6 in the Rostered hours column on that day. This will force the last 2 hours worked to be calculated at Overtime rates.
In some cases the total hours for the last day are less than the Overtime required in this instance the balance of hours needs to be spread over two days, enter 0 in the rostered hours on the last day and on the 6th day enter the number of normal hours remaining. (ie –hrs for 6th day are 5 then -1 = enter 4) for rostered hours on the 6th day of the week.
Option 3 – User Managed Average Hrs Overtime
Average hours weekly hours 38 over a 4-week block. To use this method the employee’s worked hours needs to be checked every 4th payrun. Then modified prior to completion of the 4th payrun if any Overtime is owed.
Use the same instructions for the method described above but instead of weekly process the overtime only for hours over 152 in a 4 week cycle.
To check which employees are eligible process the 4th payrun as normal but check the WEEKLY hours worked report for the 4 weeks in that cycle to determine who is entitled to overtime hours.
To do this Print the “Hours Paid by employee” report using the WEEKLY selection but selecting the start and finish weeks that form the 4 periods. Review the values in the total column. Any employees that exceed 152 hrs worked will need to be adjusted.
Check if there is already O/time in the OT column – if so deduct this amount from the Total hrs. If still over 152 then the difference is the value owed for Overtime.
Go back to the Payrun and use the aforementioned instructions in Option 2 to apply the required overtime hours.