Date printed: 10-23-2018 Last updated: 11-01-2008
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What is an Overtime Policy?
In TimeIPS, an Overtime Policy is a set of rules that allow the payroll engine to calculate overtime.
These rules include such things as:
What is a workweek?
A workweek is a 168 hour period consisting of seven 24-hour days. In many areas, labor laws dictate that after a certain number of hours in a workweek, additional work must be paid as overtime. The seven 24-hour days within the workweek are called workdays, and in some areas, labor laws dictate that after a certain number of hours in a workday, additional work must be paid as overtime. Most businesses will have workweeks and workdays aligned with calendar days, but this is not required. When employees follow workweeks that start in the middle of the calendar day, most reports and exports will follow the workweeks and workdays, rather than calendar days.
What is a Workweek Group?
Workweek Groups provide:
What is the purpose of having an “Overtime Policy?” Isn't overtime just time over 40 hours in a week?
In some locations, with some kinds of employees, working a single shift, with a steady schedule, overtime might be that simple. But, in most cases it's not.
Overtime policies allow TimeIPS to accurately calculate overtime for employees:
How does TimeIPS use Overtime Policies?
Different groups of employees, doing different kinds of work, in different areas, in different years, may all need different overtime rules. TimeIPS allows you to create Overtime Policies for all such situations. Then, TimeIPS allows you to use Workweek Groups to connect Overtime Policies to groups of employees. The connections can change and are tracked by date. Each time an employee works, TimeIPS looks at the Workweek Group the employee belongs to, at that very moment, finds the Overtime Policy in use at that time, and calculates the resulting overtime.
How will I know what overtime rules apply?
It is essential that you know the labor laws that apply to your work force and configure an Overtime Policy to match. This will allow TimeIPS to calculate overtime accurately and will help you comply with labor laws. If you have employees in multiple states, or doing multiple types of work, you may have different labor laws and rules that cover them. TimeIPS will allow you to create an overtime policy for each such group. If you're not sure what laws apply to you:
If you have questions about how to enter your Overtime Policies into TimeIPS, you can reference the Overtime Policies article in this Knowledge Base. Referencing your written overtime policy will make this procedure very quick and uncomplicated.