Technical Support Blog

Daily and Weekly Overtime Calculations

The automatic calculation of regular, overtime, and paid leave hours is one of the main reasons businesses invest in time and attendance software. So it's important to make sure your employee time clock software configuration matches your business rules. There are some settings in Virtual TimeClock that can affect how daily and weekly overtime is calculated. These settings should rarely change, but it's a good idea to know how they impact your time card software reports if you decide they do need to be adjusted.

The Time Calculations tool window allows you to set what time rounding rules are currently in effect, how worker breaks are calculated, how the time format for certain reports and export files is displayed, how overtime is calculated for multiple daily shifts and paid leave, and how salaried worker hours are computed for job costing. We're going to take a look at the settings that directly affect daily and weekly overtime calculations.

Hours off the clock before restarting daily overtime calculations
This setting controls how daily overtime totals are calculated for multiple daily shifts. Essentially, it determines how much time a worker needs to be off the clock before shift totals are restarted. By default, a new shift will start for workers after 4 hours off the clock. This means as long as an employee clocks out and back in within 4 hours, Virtual TimeClock will still consider that as one shift and apply the daily overtime rule assigned to the employee. However, if the employee clocks out and then punches back in after 4 hours, Virtual TimeClock considers this the start of a new shift and restarts daily overtime calculations.

Include leave in weekly overtime calculations
This setting controls whether paid leave is included as hours worked for the purpose of calculating weekly overtime. This is certainly a non standard practice and will cause all paid leave hours to be treated as both regular and overtime hours. If this setting is enabled, Virtual TimeClock will no longer display leave in a separate column on your printed or exported time card software reports.