Overtime Rates

Overtime Rates are used to establish a prorating (multiplier) which is then assigned to employees. Accordingly, when employees work overtime, they have the option to select an overtime rate from the time entry tool, and the appropriate client or company costs are calculated.

 

Company overtime cost =  hours worked x employee hourly pay rate x overtime prorating

Client overtime cost = billable hours worked x hourly billing rate x overtime prorating

 

For example, if an overtime rate called "Time and ½" is assigned to an employee, then the employee is able to select the "Time and ½" rate when working overtime.

 

Example: Mary has a $150/hour Billing Rate value and has the "Time and ½" overtime rate (1.5) assigned to it. When Mary submits 2 overtime hours on a billable project, the client cost is calculated as $150 x 1.5 x 2 hours = $450.

 

  • Overtime rates are not applied automatically. They must be manually selected by the employee tracking time.

  • Overtime rates can be general (double time) and assigned to all employee rates or can be specific (ACME project weekend rate) and assigned to only one employee rate.

  • Overtime rates are not required if your company does not track client or company costs or does not track overtime.

To add an overtime rate:

  1. Select Overtime Rates from the navigation bar (Projects & Employees > Overtime Rates).

  2. Click the Create Overtime Rates button.

  3. Enter a unique name for the overtime rate (up to 50 characters). The name should clearly identify the rate since this rate is displayed (when applicable) in an Overtime drop-down list in the time entry screen.

  4. Enter the prorating multiplier for the overtime rate. By default, a prorating value of 1 is assigned to a new overtime rate. Ignore the Backdate button if you are creating a new Overtime Rate. The Backdate button is used when editing an existing Overtime Rate prorating and you want to backdate existing proratings applied to this Overtime Rate.

  5. (Optional) Enter a description (up to 250 characters) – for example, to which group the overtime rate applies.

  6. (Optional) Check the Flag for archive box if you want to remove this overtime rate from the database the next time the Archive Database function is run.

  7. Click Save at the bottom of the form.


 

WHAT'S  NEXT

This overtime rate must now be assigned to employees.

 

Note:The number of overtime rates displayed in the view is limited by the Paging setting. You may need to click the paging buttons to view additional record pages.

 

Tips:

  • You can add fields to track additional overtime rate information by using Custom fields (click on the ellipsis button).

  • Use the Find function to locate a specific overtime rate by name.

 

To edit an overtime rate:

  1. Select the overtime rate to modify and click the Edit button.

  2. If you edit the prorating rate, a Backdate button is displayed. Click the Backdate button to backdate existing proratings applied to this Overtime Rate.

  3. Click Save at the bottom of the form.
     

    Note: When Time Lockout is enabled, attempts to edit rates associated with existing time entries that fall within the lock out period will either be denied or further options will be made available for those individuals with the appropriate security rights.