Accurate overtime calculation is crucial to ensuring fair compensation for employees who work beyond their standard hours. If the overtime is calculated incorrectly, it may be due to one of the following reasons.
We have compiled a list of potential issues that could lead to incorrect overtime calculations, along with steps to resolve each issue.
Pay code multiplier
Check the pay code multiplier. To do this, follow these steps in Portal.
Click Settings, then under Codes, click Pay Codes.
Search for the pay code then click three-dot menu.
Click Edit then check the multiplier on the Pay Code Formula screen.
🤓Tip: Set the multiplier to 1.25 for overtime is present and 2.0 for double time, etc.
Check the employee's FTE Hours on People Management Contract Screen or the Payroll Employee Screen.
Pay group pay period
Check the pay group pay period days and the days in the year. To do this, follow these steps in the Portal.
Click Settings, then under Codes, click Pay Codes.
Search for the pay code then click three-dot menu.
Click Edit then check the pay period days and days in the year.
FTE hours
Check the employees FTE hours. To do this, follow the steps below in Portal.
🤓Tip: Enter 1 hour for the pay code, then run the payroll validation. Check the gross to net figures and drill into the gross pay drilldown screen to view the details.
Click Employee then in the search field, search for employee.
Beside the relevant employee, click VIEW.
Check the FTE Hours.
⚠️Important: If the employee is on an annual salary, the overtime rate formula is: (Annual Salary / Pay Group Days in Year) * (Pay Group Pay Period Days) / Employee FTE Hours.