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How do I calculate overtime?

 

I. Configure overtime feature

The overtime feature is available on all account plans.

 

A. Enable Enhanced Payroll

First, enable Enhanced Payroll mode in the Admin Console at Settings => Payroll, as follows:

 

B. Set up Pay Class

Next, create your Pay Class as explained in the following article:

http://support.fareclock.com/hc/en-us/articles/201548906

If you only want to calculate overtime hours and not pay amount, then leaving wage blank may be your preference.

 

C. Set up Overtime Rules

Based on the above referenced article, you'll want to create your overtime Pay Code(s) and configure your Pay Class accordingly.

For example, if you just pay a simple 40 hour overtime at 1.5x rate, then you'll create one extra Pay Code and edit your Pay Class as follows:

 

 

You'll need to create a separate pay code for each distinct wage multiplier. For example, if overtime level 2 pays at 2x, then you'll need to create a pay code for that. Or if you simply want to track hours and pay for each overtime separately, even if the multiplier is the same, then you can create a pay code for each one. Then the Totals report will list each pay code in a separate column.

If you use weekly overtime, you'll need to specify what day of the week that overtime accumulation resets. The default is Sunday, but you can specify a different day on the Pay Class edit form as shown above.

For either daily or weekly overtime, you'll also need to specify at what time of day a new "pay day" begins. This affects both daily overtime accumulation as well as at what time of day that the new pay week begins. The default value is 12:00 AM, but you can edit this value in the Admin Console by going to Settings => Payroll => Defaults as follows:

 

Note that if you enable both weekly and daily overtime, daily overtime does not contribute to weekly overtime and also if they overlap, then daily overtime will take precedence. These behaviors are not currently configurable, so if you have a different requirement, please send feedback to Fareclock Support so we can take it into consideration for feature updates. Please also let us know whether you have other overtime feature needs which you'd like to see us make available.

 

C. California Overtime

Refer to the following article on setting up overtime rules for California:

http://support.fareclock.com/hc/en-us/articles/201056889

 

II. Reporting

Overtime is displayed on the Time Cards report, accessible in the Admin Console at Reports => Time Cards and Reports => Totals. You'll be able to add columns for Regular, OT1 and OT2 Hours, Regular & Overtime Pay, as well as Hours and Pay columns for each Pay Code, as follows:

 

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Comments

  • Avatar
    David Dorsey

    I enabled enhanced payroll and set up overtime rules. But the system is not showing the overtime calculation for shifts that we accumulate for the past days of the pay period. Is this because the new rules only take effect from the day they are enabled forward?

  • Avatar
    Jacob

    Hi David, We do have a feature to make pay class changes retroactive. When you change an employee's pay class, there's a prompt to make it retroactive to past shifts. You'll just want to make sure that's checked, and then save.

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