June 11, 2008
Forcing Time to be Paid as Overtime
Time Clock MTS Versions 2.0.1 and higher include a new setting to allow you to force a time pair to be paid as overtime. You can do this via the Tools->Edit Times menu. Just select the time pair you want to force as overtime and click the Edit Time button and you'll be shown the Edit Time screen.
To force a time to be paid as overtime all you need to do is select the 'Force Overtime' option for the time, and click the Save Time button to save the change. For overtime purposes this time will now be forced to be paid as overtime regardless of other overtime settings. Let's examine how this would work with some examples.
No daily overtime, weekly overtime limit set at 40 hours. Employee works a 5 day week of 8 hrs, 8 hrs, 8hrs, 8 hrs, and 6 hrs for a total of 38 hrs. The last day of 6 hours happens to fall on a holiday for which the employee is entitled to overtime rates. The Time Clock MTS Administrator has flagged the time pair as 'Force Overtime'. Time Clock MTS will report this week as 32 normal hours, and 6 hours of daily over time.
No daily overtime, weekly overtime limit set at 40 hours. Employee works a 5 day week of 9hrs, 9 hrs, 8hrs, 8 hrs, and 8 hrs for a total of 42 hrs. The employee has agreed to fill in for someone else for 4 hours on the last day and the employer has agreed to pay them overtime rates for doing this. The Time Clock MTS Administrator has flagged the time pair as 'Force Overtime'. Time Clock MTS will report this week as 36 normal hours, with 4 hours of daily over time on day 5, and 2 hours of weekly overtime on day 5. You can see in this case the employee still gets their weekly overtime entitlements as well as the time forced as overtime.
Why Use this Setting?
There are a few reasons why you'd want to make use of this setting:
- It's a way of giving employees overtime rates on holidays. Many employers do not pay employees for holidays not worked, but if the employee does work on the holiday they are entitled to overtime rates. The holiday pay system in Time Clock MTS wont handle this sort of system by default, so this new setting is a way of achieving what is required.
- You may have some sort of overtime regime that is not handled properly by Time Clock MTS, this new setting pretty much allows you infiinite flexibility to assign any amount of time to be paid as overtime.
- It allows for ad-hoc agreements between employers and employees. For example, you might not have an overtime policy but sometimes agree to pay employees at a higher rate for doing extra work, for performing unusual duties, or simply as a method of rewarding them.
Next time I'll take a look at the other new overtime setting for individual times, the 'Ignore for Overtime' setting.
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Posted by mnemtsas at June 11, 2008 11:58 AM