Virtual TimeClock allows you to easily track all of your employee overtime hours and premium pay. Tracking overtime can get very complex when workweeks cross payroll periods and payroll years. Virtual TimeClock's powerful overtime features ensure your employees overtime is automatically calculated correctly every time.
Employee overtime is commonly earned because of State and Federal labor laws, business policies, union contracts, or a particular employment agreement. We maintain a page with recent state overtime and premium pay laws. You should always consult a payroll tax professional to ensure that your Virtual TimeClock overtime setup meets all of your employee overtime obligations.
Virtual TimeClock Overtime Features
The process to setup and use Virtual TimeClock's overtime features can be understood in three general steps: (1) Creating overtime rules, (2) Assigning an overtime rule to a user, and (3) Understanding how regular and overtime hours are calculated and reported.
Create Overtime Rule(s)
Virtual TimeClock Basic Edition supports one overtime rule with premium pay rates for multiple daily and weekly thresholds. Virtual TimeClock Pro and Network editions allow you to create an unlimited number of overtime rules. We've created three common overtime rules (Daily, Weekly, Daily & Weekly) that you can use or modify as needed. Learn how to create or modify overtime rules.
Assign Rules to Users
Once you've created your overtime rules, any rule may be assigned to any user. Each employee may have only one overtime rule assigned to them. Learn how to assign overtime rules to users.
Calculating & Reporting Overtime
As employees clock in and out, all time worked is recorded by the software. When a timecard is created for the current payroll period, the program calculates regular and overtime hours based on the overtime rule for each employee. Regular and overtime hours are always displayed in separate columns on reports. Learn more about calculating and reporting overtime.
When a payroll period is closed, regular and overtime hours are calculated and permanently saved. Any hours on a report from a prior period are not totaled or calculated. Therefore changing an employee's overtime rules will not change overtime calculations or totals for closed/prior payroll periods. Learn more about opening and closing payroll periods.