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About UsOvertime Calculations in Time and Attendance Plus
There are a number of ways of calculating overtime in Time and Attendance Plus. This flexibility will greatly reduce the amount of time spent on payroll calculations and will reduce or eliminate payroll errors.
Setting up Time and Attendance Plus for Overtime Calculations
Firstly let's log into Time and Attendance Plus and go to the Tools & Options->Options->Payroll screen.
The Payroll settings screen shows different settings that effect the way overtime is calculated in Time and Attendance Plus. The most important settings are Pay Daily / Pay Weekly Overtime, Pay Daily / Pay Weekly Overtime After limits, and the Overtime Calculation setting. The first four settings determine if employees are paid weekly or daily over time and the hourly limits after which overtime applies. Daily overtime is calculated on hours worked in a single work day, the clock in time determines which work day work hours belong to. Weekly over time is calculated on work week as determined by the First Day of Week setting that can also be found on the Payroll settings page.
For the purposes of this tutorial we shall pay daily and weekly overtime (after 8 hours and 40 hours). Report rounding will be set to none, the first day of the week will be Monday and we wont apply automatic breaks.
Definition of Overtime Calculation Methods
There are 4 different overtime calculation methods in Time and Attendance Plus. These are:
- Daily Only: overtime will be paid if the work hours for a single day exceed the daily overtime limit. Note that the hours for a punch in / out pair are considered to be on the day that the punch in occurs. So for overtime calculation purposes a punch in at 10:00pm on 11 November and a punch out on 1:00am on 12 November is calculated as three hours worked on 11 November.
- Weekly Only: overtime will be paid if the work hours for a work week exceed the weekly overtime limit. Note that the hours for a punch in / out pair are considered to be in the work week that the punch in occurs. So a punch in at 10:00pm on Sunday 11 November and a clock out on 1:00am on Monday 12 November is considered to be three hours worked in the work week ending Sunday 11 November.
- Daily and Weekly: overtime is paid for any hours that exceed the daily OR the weekly overtime limits.
- Daily and Weekly No Double Up: any hours worked that exceed the daily overtime limit are paid as overtime. Any hours that exceed the weekly overtime limit are also paid as overtime given that they are not already being paid as daily overtime.
Example Overtime Calculations
The easiest way to examine how overtime calculations work in Time and Attendance Plus is to look at some examples and demonstrate how each overtime calculation method would determine overtime payable.
| Example 1 | ||||
| Overtime Calculation Method (from list above) | ||||
| Weekday / Hours | 1. | 2. | 3. | 4. |
| 1 / 8 hrs | 8/0 | 8/0 | 8/0 | 8/0 |
| 2 / 8 hrs | 8/0 | 8/0 | 8/0 | 8/0 |
| 3 / 9 hrs | 8/1 | 9/0 | 8/1 | 8/1 |
| 4 / 9 hrs | 8/1 | 9/0 | 8/1 | 8/1 |
| 5 / 8 hrs | 8/0 | 6/2 | 6/2 | 6/2 |
| 6 / 0 hrs | 0/0 | 0/0 | 0/0 | 0/0 |
| 7 / 0 hrs | 0/0 | 0/0 | 0/0 | 0/0 |
| Total: | 40/2 | 40/2 | 38/4 | 38/4 |
| Example 2 | ||||
| Overtime Calculation Method (from list above) | ||||
| Weekday / Hours | 1. | 2. | 3. | 4. |
| 1 / 8 hrs | 8/0 | 8/0 | 8/0 | 8/0 |
| 2 / 8 hrs | 8/0 | 8/0 | 8/0 | 8/0 |
| 3 / 8 hrs | 8/0 | 8/0 | 8/0 | 8/0 |
| 4 / 8 hrs | 8/0 | 8/0 | 8/0 | 8/0 |
| 5 / 10 hrs | 8/2 | 8/2 | 6/4 | 8/2 |
| 6 / 0 hrs | 0/0 | 0/0 | 0/0 | 0/0 |
| 7 / 0 hrs | 0/0 | 0/0 | 0/0 | 0/0 |
| Total: | 40/2 | 40/2 | 38/4 | 40/2 |
| Example 3 | ||||
| Overtime Calculation Method (from list above) | ||||
| Weekday / Hours | 1. | 2. | 3. | 4. |
| 1 / 6 hrs | 6/0 | 6/0 | 6/0 | 6/0 |
| 2 / 7 hrs | 7/0 | 7/0 | 7/0 | 7/0 |
| 3 / 9 hrs | 8/1 | 9/0 | 8/1 | 8/1 |
| 4 / 5 hrs | 5/0 | 5/0 | 5/0 | 5/0 |
| 5 / 10 hrs | 8/2 | 10/0 | 8/2 | 8/2 |
| 6 / 4 hrs | 4/0 | 3/1 | 3/1 | 3/1 |
| 7 / 9 hrs | 8/1 | 0/9 | 0/10 | 0/9 |
| Total: | 46/4 | 40/10 | 37/14 | 37/13 |
Key differences to realize between overtime calculation methods are shown in examples 2 and 3. In Example 2 the difference between the "Daily and Weekly" and "Daily and Weekly No Double Up" calculations methods is that the employee is effectively paid double overtime for the last two hours worked on day 5 for the "Daily and Weekly' calculation method. However, for the "Daily and Weekly No Double Up" calculation method they are only paid once. Example 3 is largely similar. For the the last hour worked on day 7 the employee is paid double overtime for the "Daily and Weekly' calculation method but only single overtime for the other method.
Conclusions
Time and Attendance Plus allows you to calculate overtime in a number of different ways, and in the majority of cases it will comply with your local overtime regulations and save you a great deal of time.
