Conducting payroll, and paying employees correctly is critical to your business operations. Paying employees too much can negatively impact business profits while paying them not enough leaves employees frustrated and unmotivated. If companies fail to pay their employees correctly, they could even find themselves in legal trouble. For this reason, it is crucial to accurately set up overtime and payroll settings.
When employees work overnight shifts, the process becomes more complicated. Managers may find themselves with questions, such as is the employee entitled to overtime or if was it added correctly. As payroll approaches, managers may find themselves having to manually edit their time sheets to ensure they are accurate.
In this article, we will go over the simple way you can set your time clock settings for overnight employees so you can eliminate any concern of paying them incorrectly.
Step 1: Setting Up Your Overtime Settings
The first step to accurately paying your overnight employees is to make sure your overtime settings are set up correctly and comply with both your company's and country's overtime policies.
To set your overtime settings enter your time clock > click on settings > enter the overtime tab. Here you have a variety of different settings such as daily, weekly overtime, hourly, and more! Simply set the desired over-time settings and be sure to save changes.
To learn more about the different overtime settings click here.
Step 2: Adjusting your Payroll Settings
Now it's time to make sure that the hours of overnight shifts are calculated correctly. Here at Connecteam, we allow you to allocate all the hours to the day the shift started, rather than dividing them between the two days.
Let's look at an example: Let's say I pay my employees daily overtime after 8 hours. I have an employee who works an overnight shift of 10 hours between Sunday and Monday and therefore is entitled to two hours of overtime pay. If on the employee's timesheet the shift is split between Sunday and Monday he won't receive any overtime pay because neither day accumulates to more than 8 hours. If all the hours are counted as "Sundays shift" however the employee will be paid correctly with 8 hours of regular pay and 2 hours of overtime pay.
Now let's set this up! Navigate to the time clock > enter the time clock settings > click on payroll > check the overnight shifts total hours will be assigned to the day the shift started > save changes. That's it, you've set everything up!
Now let's take a look at exactly how this affects your employee's timesheets
How Does Overtime for Overnight Shifts Look on Timesheets?
On the timesheets shifts that span across multiple days will be linked with an indicator. Take a look at how this looks below.
The total hours will be assigned to the day the shift began. If there are any overtime hours they also appear on the start date. The following day of the shift will be marked with an indicator letting you know that the shift was an overnight shift.
If you need to edit the shift hours, you can do so by simply clicking on the start or end time and changing them accordingly. You can also delete a row by clicking on the trashcan to the right of the shift.
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