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June 12, 2008

Excluding Times from Overtime Calculations

By Mark Nemtsas at 1:15 PM

Time Clock MTS Versions 2.0.1 and higher feature a new setting to allow you to exclude a time pair from any overtime calculations. You can do this via the Tools->Edit Times menu. Just select the time pair you want to exclude from overtime calculations and click the Edit Time button and you'll be shown the Edit Time screen.

To exclude a time from overtime calculations all you need to do is select the 'Ignore for Overtime' option for the time, and click the Save Time button to save the change. For overtime purposes this time will now be ignored for all overtime calculations regardless of other overtime settings. Let's examine how this would work with some examples.

Example 1
Daily overtime set at 8 hours, weekly overtime limit set at 40 hours. Employee works a 5 day week of 10 hrs, 8 hrs, 8hrs, 8 hrs, and 8 hrs for a total of 42 hrs. The Time Clock MTS Administrator has flagged two hours of day one as 'Ignore for Overtime' because the employee was underpaid by two hours last week. Time Clock MTS will report this week as 42 normal hours only.

Example 2
Daily overtime set at 8 hours, weekly overtime limit set at 40 hours. Employee works a 5 day week of 8 hrs, 9 hrs, 9hrs, 8 hrs, and 8 hrs for a total of 42 hrs. The Time Clock MTS Administrator has flagged four hours of day 5 as 'Ignore for Overtime' because the employee went home sick during the day, the administrator wants the employee to be paid for these hours but not impact on overtime calculations. Time Clock MTS will report this week as 40 normal hours, and 2 daily overtime hours.

Why Use this Setting?
There are a few reasons why you'd want to make use of this setting:

1. It's a way of helping administrators fix up underpayments from previous pay periods. You may want to just add a few hours to the current payroll period to make up for hours not paid previously, but you don't want these added hours to impact on overtime for the current pay period.
2. You don't want sick time or vacation time to impact on overtime calculations. Example 2 above covers this case.
3. It's a way of employers paying employees for time they are making up. For example, an arrangement may be reached with an employee to have 4 hours off work one week on the understanding that they will make it up the next week. Of course you don't want the make up hours to impact on overtime calculations for the second week.


Or $199 (US) for 20 computers

Posted by mnemtsas at June 12, 2008 1:15 PM