How do I pay my Employees for Overtime when I run Payroll?

Whether or not an Employee will be paid overtime will depend on a number of conditions:

1. At least one Overtime Rule must have been created of the same duration as the Payroll Period.
2. There must either be a system default Overtime Rule or an Overtime Rule must be set on the Employee profile.
3. Part or all of at least one of the Employee's Visits must fall in overtime.
4. The Employee's Visits must be eligible for  by virtue of their Service Code settings and have an Overtime Pay Code set.
5. An Overtime Pay Code or Rate must be set on any Visits in overtime.

1. Creating Overtime Rules

An Overtime Rule must correspond to the Payroll Period length. For example, only rules of xx hours per week will apply in a 7-day Payroll Period.

To create Overtime Rules, see here.

2. Overtime Rule Setting at the System Level

If a default Overtime Rule is set at the system level, it will apply to all Employees who have no Overtime Rule set in their profile, even if the Overtime Rule has since been disabled.

See here to set a rule at the system level.

3. Overtime Rule Setting at the Employee Level

If no Overtime Rule is set at the system level, Employees will only receive overtime if they have an Overtime Rule set in their profile. This rule will apply even if the Overtime Rule has since been disabled.

See here to set an Overtime Rule on an Employee profile.

4. Visits are in or go into Overtime

A Visit is in overtime when it begins in overtime or crosses over into overtime.

Example 1: beginning in overtime

Given:

• an Overtime Rule of 40 hours per 7 days
• a single Employee with 11 4-hour Visits during the Payroll Period

Then:

• the last Visit is entirely in overtime and will earn overtime pay over its entire duration, assuming all other conditions for overtime are met.

Example 2a: crossing into overtime with a Pay Code in HOURS

Given:

• an Overtime Rule of 40 hours per 7 days
• a single Employee with 7 6-hour Visits during the Payroll Period

Then:

• the last Visit is in overtime as of the beginning of its fifth hour and will earn over time for the last two hours of its duration, assuming all other conditions for overtime are met.

Example 2b: crossing into overtime with a Pay Code in VISITS

Given:

• an Overtime Rule of 40 hours per 7 days
• a single Employee with 7 6-hour Visits during the Payroll Period

Then:

• the last Visit is in overtime for the total of its duration, i.e., one Visit.

5. Overtime Setting at the Service Code Level

An Employee's Visit is eligible to count towards overtime when its Service Code does not have the option OT Exempt checked.

Example 1: counting towards overtime

Given:

• an Overtime Rule of 40 hours per 7 days
• a single Employee with 45 1-hour visits where the Service Codes do not have OT Exempt checked

Then: 

• the Employee's tally of hours towards overtime is 45 hours, of which 5 actually are in overtime.

Example 2: not counting towards overtime

Given:

• an Overtime Rule of 40 hours per 7 days
• a single Employee with 45 1-hour Visits, where the Service Codes of 10 Visits do have OT Exempt checked and the rest do not

Then: 

• the Employee's tally of hours towards overtime is 35 hours, and therefore none of the Visits are considered to cross into overtime, even though the total hours worked is still 45.

An Employee's Visit in overtime will receive the Overtime Pay Code configured on the Service Code. If no Overtime Pay Code is configured for the Service Code, the Visit will receive the regular Pay Code, even if in overtime.

See here to configure Service Codes.

6. Overtime Setting at the Visit Level

Whether or not there is an Overtime Pay Code set at the Service Code level, the Overtime Pay Code and Rate can be overridden at the Visit level.

These codes/rates are overridden on individual Visits, so it must be the Visits that actually fall in overtime that have an override.

For example, for 10 Visits of 5 hours, where the Employee earns overtime for every hour past 40, the last two Visits must have Overtime Pay Code or Overtime Pay Rate overrides in order to earn the overtime.

1. Navigate to Visit>Accounting to edit Pay Code (Overtime) and Pay Rate (Overtime) fields.
   
   
   
   
2. Click Update Visit.

 If the Employee has custom rate settings for Pay Codes, they will take precedence over rate overrides at the Visit level.

Learn more

• How do I set/edit/clear a Custom Pay Code Rate for a particular Employee?