Technical Support Blog

Feature Highlight: Overtime

An employee may be entitled to premium or overtime pay for a number of different reasons. State and federal laws mandate a number of employer overtime responsibilities. In addition, business policies and union contracts often create additional circumstances where workers can earn overtime pay. Virtual TimeClock’s flexible overtime features allow you to create any number of robust overtime rules that will automatically calculate employee overtime for almost any employment situation.
 
Virtual TimeClock comes with the three most common overtime rules pre-configured for you.  There is no limit to the number of additional rules that can be added and/or customized as needed. Each overtime rule can be assigned to any or all of your users.
 
To assign users to an Overtime rule:
  • Select Turn Administration On… in the File menu
  • Select Overtime in the Configure Menu
  • Select the desired rule on the left hand side of the Configure Overtime window
  • Click Edit in the Assigned Users pane (shown below)
 
  • Check the desired users in the User Assignments window. Note: Users can only be assigned one overtime rule.
 
  • Click Save Changes when finished
 
 
Creating Custom Overtime Rules:
 
Each rule can be configured for up to two different overtime thresholds and customizable pay rates. The threshold hours can be set weekly, by day of the week, and even number of consecutive days worked. This makes it easy to place your employees on alternative work schedules and still ensure they are paid correctly.
 
To create a custom rule:
 
  • Enter the overtime configuration area using the steps above.
  • Click the Add button at the bottom of the overtime rules list on the left.
  • Enter the name for your new rule (i.e. “Daily Only”)
  • Set the appropriate overtime rates (1.5 for time and a half, 2.0 for double, etc.).
  • If your rule includes weekly overtime, select the Weekly checkbox and the number of hours worked in the week before the overtime rule goes into effect.
  • If your rule includes daily overtime, select each day of the week which the rule applies, as well as the hours of work required for that day before the rule goes into effect.
  • If your overtime rule includes 6th and/or 7th consecutive days worked, check the appropriate boxes and drop-down menu that reflects which hours that will be included as overtime.
 
 
  • Click the Save button when you are satisfied with the configuration of your new overtime rule.
 
Viewing Overtime Hours on a Report:
 
Virtual TimeClock automatically breaks out overtime hours and reports them by rule type on both detail and summary reports.   This makes it easy to determine which hours are being paid due to daily or weekly thresholds and which pay rate is being applied.
 
 
 
 
Hint:
  • You should always consult a payroll tax professional if you have questions about your employee overtime obligations and responsibilities.