Creating Overtime Pay Codes

From the main "Admin" tab, click on the "Pay Codes" link located under the Policies heading.

Navigate to the Overtime Pay Codes section of the screen, and click on the [ADD OVERTIME] icon.

This screen is divided into two sections.

Pay Code

1. Enter a Name for this code, as you would like it to appear throughout the system.
2. Enter a 3-character Abbreviation for the code. This abbreviation will be displayed with hours totals in areas like Time Cards and reporting.
3. Enter the Export Code to be used when exporting your hours to an external payroll software. Some payroll programs require that this code be set up in a specific format. Ensure that you are familiar with you payroll program's specifications.
4. The Type field denotes that you are creating an "Overtime" pay code, and should be left as is.

Overtime Pay Code

5. Select the desired overtime Type from the drop-down menu. Refer to Overtime Types for a detailed definition of each available type.
6. The Day of Week option only appears when using a Type of "Day of the Week." Select the appropriate week day from the drop-down menu.
7. Enable the Compensatory Time option if the overtime policy is to be used on conjunction with a Comp Time policy.
8. The Weighted Average option is used primarily for compliance with California state law, and allows for a very specific calculation for the overtime rate which includes other factors than just hours. Refer to Weighted Average Overtime for a detailed explanation of this feature.
9. Enter the Multiplier that you would like this policy to use. The most commonly used settings are "1.5" for time-and-a-half and "2" for double-time.
10. In the Threshold Hours field, enter the number of hours that employees must work before overtime is awarded.
11. Enter the Operation Precedence for this policy. This setting sets the order in which overtime policies will be applied by the system if more than one goes into affect for an employee's hours. A setting of "1" is the highest precedence.
12. In the Threshold Pay Codes section, select the Pay Codes that you would like to count toward the specified "Threshold Hours." All Pay Codes in the Included box will be applied. To exclude a Pay Code, select the code in the Included box, and click on the icon. The selected code is moved to the Excluded box.
13. In the Affected Pay Codes section of the screen, select the Base Pay Codes that you would like to be affected by the overtime policy. Any hours attached to a Pay Code in the Included box will have overtime applied to them when the number of hours in the "Threshold Hours" field is exceeded. To exclude a Pay Code, select the code in the Included box, and click on the icon. The selected code is moved to the Excluded box.

When you have finished specifying Overtime Pay Code settings, click on the [SAVE] icon to add the code to the system.

Related Topics

• Refer to Overtime Types for a detailed definition of each available type of overtime.
• An option on this screen allows you to specify that the overtime policy will be used with Comp Time.
• An option on this screen allows you to specify that the overtime policy will be used for Weighted Average Overtime. Refer to Weighted Average Overtime for instructions on using this feature.