Calculating your employee’s hours correctly is one of the most important and necessary parts of running a business. By paying your employees correctly whether it is regular hours or overtime hours you are essentially telling them you value their work and want them to remain a part of your business. However, correctly figuring out your employee’s hours and overtime hours can also be incredibly challenging.
For this reason, we have created our simple-to-use Overtime Capability. The overtime can be set in various ways, ensuring that you will always comply with your company policies or country’s legal requirements. This makes paying your employees correctly a whole lot easier!
In this article we will go over:
Now let's take a look at all the overtime options!
Where Can I Find My Overtime Settings?
Overtime settings can be found in the Time Clock Settings. To access these, navigate to the time clock of the left sidebar and enter the relevant time clock, go to settings, and then overtime.
Pro Tip: Don't forget that like all Time Clock settings, Overtime settings are specific to the Time Clock they are being set in. If you have more than one Time Clock you will need to set the overtime settings separately in each one.
If your employees get paid more after working a certain number of hours in a day, then daily overtime is for you.
To set this up follow these steps:
Navigate to the overtime settings
Toggle on the daily overtime.
Select the days of the week that the overtime applies (these will be displayed in blue),
In the start after column, enter the number of hours the employee will work before the overtime begins.
Then in the multiplier section, enter the rate at which the overtime will be paid. You can choose to multiply the base wage by the "x" amount or add it to the base wage "x" amount.
In the example below you can see the daily overtime is set on Monday to Friday, starting after 8 hours and at a rate of 1.5. (In numbers: if the base wage is $10 per hour, then after 8 hours it will be $15 per hour) Under the multiplier selection, you can choose to either multiply the base wage, or you can choose to add the amount to the base wage. In the second example below, you can see that on Saturday, starting after 8 hours, the rate is the base wage + added 1.5 of the base wage. (In numbers: if the base wage is $10 per hour, then after 8 hours it will be $11.5 per hour).
Please note that you can set as many Daily Overtime rules as you need by simply adding another daily rule. This can be used, as seen in the example below if you pay your employees at a rate of 1.5 after 8 hours, and then at a rate of 2x after 12 hours.
Daily overtime can also be set to pay a different rate on specific days. For example, if on Sunday you always pay your employees at a rate of 1.5. This can be done by adding a daily rule, selecting only the relevant day, and making sure the multiplier starts after 0 hours!
If you pay your employees after they work a certain amount of hours per week then weekly overtime is for you!
To set this up navigate to the overtime settings as you have done until now, then toggle on the weekly overtime time. Set the number of hours the overtime will start after, and set the multiplier to be the rate the employees are paid.
In the example below you can see that employees are paid at a rate of 1.5 after working 40 hours in a week.
Pro Tip: All overtime is calculated independently of one another. If you want to give your employees both weekly and daily overtime you can do so by setting up both options.
We all know that working on the holidays is no fun! For this reason, a lot of employers incentivize employees to work holidays by paying overtime. With Connecteam's Holiday over time, you can easily create a list of holidays and the rate they are paid at. You can even set the holiday to repeat next year!
Let’s take a look at how to set this up!
Enter your overtime settings as you have done until now
Toggle on the holiday overtime
Select edit your holiday list and then add a holiday rule
Enter the holiday name, start and end date, add in the start and end hours and multiplier (the rate) that the holiday is paid
If you want the holiday to repeat check off repeat every year on these dates
In the example below Easter is set as the 9th, starting at 05:00 AM until 20:00 PM, at a rate of 1.5x, and to repeat each year.
Partial Day Overtime
If you pay your employees at a different rate during different hours of the day then the Partial Day Overtime is for you. An example of this might be paying employees who work an overnight shift at a different rate than employees who work a day shift.
To set this up enter the overtime settings, toggle on a partial day over time, select
the days and set the hours between which the overtime will apply. Then set the multiplier rate the employee will be paid.
In the example below, employees are set-up to be paid at a rate of 1.5 between 12 am and 9 am on Monday through Friday.
Pro tip: Partial Day Overtime applies to shifts from the time it begins to the time it ends, even if it runs over into a day that is not selected. In the example below, we can see that Partial Overtime was selected from 08:00 PM to 04:00 AM on Monday. If the shift starts at 02:00 AM on Tuesday, it will count as overtime even if you didn't mark Tuesday as one of your selected days.
Consecutive Days Overtime
Do you live in a state or country that requires you to pay employees overtime if they work a certain number of days in a row? No problem, when building the overtime Connecteam considered this too!
To set this up follow these steps:
Enter the overtime settings and toggle on the consecutive day's overtime
Set the day as consecutive days. This will be the number of days after having worked that the overtime will begin.
If needed set the number of hours worked on the consecutive day at which overtime will begin.
Set the multiple by which the employee will be paid
In the example below you can see that on the 6th consecutive day after 8 hours of work the employee begins to get paid at a rate of 1.5.
Pay Period Overtime
Do you pay your employees if they work more than a certain number of hours during a specific payroll period? Then this overtime option is for you.
To set this up go to the overtime setting, then toggle on the pay period over time, set the number of hours after which the overtime will begin, and set the multiplier.
In the example below you can see that if an employee works more than 80 hours during a pay period they receive overtime pay of 1.5 percent.
Pro Tip: The overtime pay period is calculated best on the set payroll settings. To learn more about payroll settings have a look at the article How to set your payroll period and payroll reminders.
How Does Overtime Look on the Timesheets for Admins?
Now that you have successfully set up your overtime settings, let’s go over how overtime looks in the timesheets.
The timesheets tab can be used to view an overview of all the hours worked by your employees during a given payroll period. When looking at the timesheets tab the date range will be automatically set to the current payroll period. At the top, you will be able to see the amounts of total paid hours, regular hours, and overview hours. In the list below you will also be able to see the total hours of regular hours and overtime hours per user.
If you hover over the overtime hours at the top, a breakdown will appear showing which hours are paid at which rate. In the example below you can see that there are 39 hours of overtime, 19 of those hours are paid at the rate of 1.5, and 20 are paid at the rate of 2x.
When entering an individual user's timesheet you will also see an overview of the total paid hours, regular hours, and overtime hours at the top. Like in the timesheets overview, when hovering over the overtime you are able to see the hours broken down by rate. Additionally, the overtime column displays users' overtime on a daily basis.
How Does Overtime Look When Exported to Excel?
Don't forget that all your timesheets can be exported for payroll purposes. When exporting these, your overtime hours are including making it easy for you to conduct payroll.
After exporting the timesheets the overtime hours are displayed by rates according to the overtime settings that are set.
In the example below there are 3 columns 1.5x overtime, 2x overtime, and Total overtime.
Pro tip: The rate displayed in the Timesheets and exports are according to the rate set in the overtime settings, and may be different according to your settings. For example, a company that pays at a rate of 1.25 and 1.5, but never 2x will only see columns with the rate 1.25 and 1.5 in their timesheets containing overtime.
If you would like to know more about preparing for payroll with Connecteam make sure to check out this article!