The compensation paid for working additional hours that is beyond the normal working hours is referred to as Overtime. If the standard working hours are 40 hours per week, and if the employee has worked for 50 hours that week, then the 10 hours extra worked will be eligible for Over Time Payment.
To update the overtime units, the first step is to create the Overtime Component.
Click the “Settings” icon.
Click “Salary Components”.
Select “New”.
Create a Pay component Overtime.
The abbreviation can be OT.
Configure it as below:
“Paid Type”- Overtime
Check the box - “Paid Component”,
“Tax Status” as “Taxable”
This should be a “Variable Component”.
The calculation Type can be either Flat or Formula-based.
Select the “Overtime calculation unit” as Day or Hours.
Enter the maximum unit of Overtime.
Click “Add”.
Once created and configured as above, the component needs to be allocated to all Employees.
For more details on how to allocate a component, please click here.
Update the OT units:
On the Home Page click “Transactions”.
Scroll down to Time Tracking, Management
Click “Leaves”.
Click “Update Over Time Units” under “Workflow”.
Click the arrow key next to “Add OT units manually employee-wise”.
Select the “Month”.
Select the “Pay Component” as Overtime.
Enter the “Employee Code/Name”.
Enter the “Total Units”.
Click “Add”.
Click “Save”.
To import the Overtime units in bulk, Click the arrow key next to “Import OT Units in bulk”.
Click “Import”.
Click “Download template here”.
Update the details and save the file to the local drive.
Select “Month” from the drop-down.
Select the “Location”.
Click “Choose File”.
Click “Import”.
Click “Save”.
The OT units will be automatically considered in the payroll run during “Run Payroll”.
To view the OT units computed
Click “View OT units auto-computed for edit/confirmation.”
Select the “Month”.
Click “View OT Report”.
You can edit the OT units by making the necessary changes in the spreadsheet, saving it, and importing it back by clicking “Import OT File”.
