Overtime
Report 149 – Overtime Hours outlines all employees with overtime hours and can be filter for daily or weekly overtime. The following overtime approach is outlined for non-exempt employees that are paid for overtime hours. When exempt salaried employees work overtime their hourly pay rate is reduced to reconcile to their paycheck which is not impacted by overtime.
A timecard authorization is the key component for authorizing and managing paid overtime (non-exempt employees). An overtime authorization identifies the person, their task where overtime is allowed and the overtime payroll item (which defines the pay rate). Planned hours may also be filled on the authorization as a guide for the hours available for overtime.
The recommended approach for tracking employee overtime is to setup a second authorization for the same task using an overtime payroll item. When creating an overtime authorization check the “Display Payroll Item (PI)I” option which includes the “payroll item display” text on the user’s timecard task display.
To designate the payroll item display text, open the Payroll Items page, select the overtime payroll item and enter text, i.e. “OT” in the payroll item display column.
Instruct users to enter their time to the applicable overtime authorization(s) based on criteria established in your overtime business policy. Overtime is clearly identified on the timecard line so both the person and their supervisor have a clear delineation of the overtime hours when entering or approving a timecard.
The payroll journal entries sent to QuickBooks are calculated using the employee pay rate assigned to the time authorization’s payroll item. The result is overtime hours calculated using the employee’s specific overtime pay rate.
Copyright © Penergy Technologies, Inc.