Tips & Tricks

Virtual TimeClock Tips & Tricks - October 2014

Does Virtual TimeClock easily calculate weekly overtime when a payroll period begins or ends in the middle of a workweek? The short answer is "Yes!" Just keep reading because in this month's 'Tips & Tricks' newsletter we'll discuss the relationship between workweeks and overtime so you can have confidence that you're not underpaying or overpaying your employees. Just because the United States federal labor guidelines aren't always easy to understand doesn't mean you're not still responsible for complying with the rules.

What exactly is a workweek?
Most employers in the United States are aware that the Fair Labor Standards Act (FLSA) requires overtime pay for all hours worked over 40 in a workweek. But what's a workweek? FLSA defines a workweek as a fixed and regularly recurring period of 168 hours (seven consecutive 24 hour periods). FLSA also has some very specific regulations concerning the workweek. For example, employers are not allowed to average the hours worked over two or more weeks, so you can't deny an employee overtime if they work 60 hours one week and only 20 the next week. Virtual TimeClock makes this easy to monitor because it will always group hours according to your defined workweek when viewing employee timecards.
Here's a quick Tip:
You can change the day your workweek begins by turning on administration from the File menu, then going to Configure Time Settings.

How does Virtual TimeClock calculate workweek overtime?
Since a payroll period can fall in the middle of a workweek, it's important to understand how Virtual TimeClock handles weekly overtime. Weekly overtime is calculated from your defined workweek start day, regardless of your payroll frequency. This means if your workweek runs from Monday to Sunday and the payroll period ends on Wednesday, the time clock is smart enough to know that next time it will need to include the hours from Monday, Tuesday, and Wednesday when determining if the employee passed the weekly overtime threshold, even if those days fall within the prior payroll period. A related topic is how paid leave, like vacation and sick days, affects weekly overtime. Virtual TimeClock does not include paid leave time as hours worked when calculating weekly overtime because it's not a standard practice for most businesses. However, if you choose to include paid leave in your overtime totals, there is a setting in Configure Time Settings to accommodate it.
Here's a quick Tip:
You can review specific overtime rules for your state with our free online Employer Resources.

As you can see, Virtual TimeClock is flexible enough to handle practically any configuration scenarios you can throw at it so you can spend more time taking care of business and less time managing employee timecards.

P.S. - Daylight Saving Time ends for most locations in the United States this weekend so many of you will be setting your clocks back 1 hour.