Calculating Overtime
Overtime is calculated on the first day of each week, for the previous week. You can change the first day of your week on the General tab of your Settings page. The reason it's calculated weekly is because we need to compare the weekly overtime with the daily, to see which is greater.
The parameters by which we calculate overtime are defined on the Staff tab of your Settings page, but can be overridden on each staff member's overtime page.
In this example, more than 40 hours per week are considered to be overtime, and more than 7.50 hours per day are considered to be overtime. The below is a screenshot example of a staff member's overtime page, or report, and it shows how the total eligible overtime is calculated. Each overtime calculation is based on a one week period, so you will see one row for each day of the week, with the hours worked each of those days, and how many of those hours are considered daily overtime.
This calculation also sums all the work hours for the week to determine if the weekly overtime threshold was surpassed, resulting in weekly overtime. In this example there was no weekly overtime because the total weekly hours was below the weekly threshold of 40. There are however 4.75 hours of total daily overtime, and since 4.75 is greater than 0.00 (weekly overtime), the total overtime for the week is 4.75.
The overtime calculations for each staff can be seen on each individual staff member's Overtime page, or by opening Reports / Payroll / Overtime.
Banking Overtime
Overtime can be banked or paid out. On each staff member's Time Bank page, there is an option to automatically bank overtime. Enable this option to automatically bank overtime.
Note: By default, banked time expires if not used within 6 months. This setting can be modified on the Staff tab of your Settings page and should be set according to your regional employment laws.
Overtime on Payroll Reports
To display overtime hours on a payroll report, enable the option to "Show overtime". With this option enabled, overtime hours are listed separate and are not included in "Regular Hours", so you have the option of paying out those overtime hours at a separate rate.
The total overtime hours shown on the report include the overtime earned in each week, for which the last day of the week is included in your report date range.