I am having trouble finding information on whether or not it is possible to have TimeTrex automatically calculate overtime at the higher of two pay-rates before it calculates general overtime.
For example, if an employee works the following schedule:
8 hours Sunday
8 hours Monday
8 hours Tuesday
8 hours Wednesday
10 hours Thursday
8 hours Friday
4 hours Saturday
Overtime is paid for anything over 40 hours in one week. If we were to use a simple overtime calculation, Friday and part of Thursday would be paid at 1.5x the regular rate, and Saturday would be paid at 1.5x the weekend rate.
However, we give weekend hours preference in the calculation. Thus, we would pay 12 hours at 1.5x the weekend rate (Sunday and Saturday), and 2 hours at 1.5x the regular rate. Everything else would be paid at the regular rate.
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Is it possible to configure TimeTrex to do this?
Overtime & shift differentials
Re: Overtime & shift differentials
The first question is are you going to be using TimeTrex to process your payroll, or some other software?
Do employees get paid a weekend rate for all hours worked on a weekday regardless of how many they worked during the week? Or it just overtime during the weekend that they get paid a different rate for?
Do employees get paid a weekend rate for all hours worked on a weekday regardless of how many they worked during the week? Or it just overtime during the weekend that they get paid a different rate for?
Re: Overtime & shift differentials
Thanks for responding so quickly.
Right now, we are using our accounting package to process payroll (Financial Edge's Blackbaud), and would use TimeTrex primarily as a punch-clock and scheduler, at least for right now. We will be looking to export the timeclock data so that we can import it into the accounting package.
Employees are paid a premium of $1/hr for all shifts on Saturday and Sunday. If there is no overtime during the week, it is pretty straightforward, and seems to be very intuitive to set up in TimeTrex.
The trouble is when an employee works on Sunday (which gets a premium), and then hits the 40+ threshold later in the week. We pay the employee a weekend overtime rate if they had more than 40 hours, and any weekend hours at all, regardless of when the threshold was crossed. Even though the weekend hours occurred on the first day of the pay-period.
My example schedule could have been clearer, I apologize.
Take:
2 hours Sunday
10 hours Monday
10 hours Tuesday
10 hours Wednesday
10 hours Thursday
In this case, we would pay the employee 2 hours at a weekend overtime rate (which is, 1.5x(regular rate + $1)), and 40 hours at the regular rate.
Right now, we are using our accounting package to process payroll (Financial Edge's Blackbaud), and would use TimeTrex primarily as a punch-clock and scheduler, at least for right now. We will be looking to export the timeclock data so that we can import it into the accounting package.
Employees are paid a premium of $1/hr for all shifts on Saturday and Sunday. If there is no overtime during the week, it is pretty straightforward, and seems to be very intuitive to set up in TimeTrex.
The trouble is when an employee works on Sunday (which gets a premium), and then hits the 40+ threshold later in the week. We pay the employee a weekend overtime rate if they had more than 40 hours, and any weekend hours at all, regardless of when the threshold was crossed. Even though the weekend hours occurred on the first day of the pay-period.
My example schedule could have been clearer, I apologize.
Take:
2 hours Sunday
10 hours Monday
10 hours Tuesday
10 hours Wednesday
10 hours Thursday
In this case, we would pay the employee 2 hours at a weekend overtime rate (which is, 1.5x(regular rate + $1)), and 40 hours at the regular rate.
Re: Overtime & shift differentials
If you aren't using TimeTrex for payroll, the actual rates don't come into play at all, unless you require them for other purposes. However you still need to track the proper time in the proper cost centers so your payroll software can apply the necessary rates.
Are your overtime weeks Sun - Sat, or Mon-Sun? If they were Mon-Sun TimeTrex could do what you want, but if they are any other overtime week it can't, because the weekend wouldn't fall at the end of the overtime week.
Currently there is no way to tell TimeTrex to go back over the last week and determine if the employee worked on a weekend then change their rate of overtime pay based on that result.
However if the weekend falls at the end of the overtime week, you can easily setup a premium policy that kicks in if the employee is working on a weekend, and an additional premium policy that kicks in when the employee is working a weekend and has already worked more than 40hrs in the same week. These two policies combined with a regular overtime policy thats active after 40hrs should give you the result you are looking for.
Are your overtime weeks Sun - Sat, or Mon-Sun? If they were Mon-Sun TimeTrex could do what you want, but if they are any other overtime week it can't, because the weekend wouldn't fall at the end of the overtime week.
Currently there is no way to tell TimeTrex to go back over the last week and determine if the employee worked on a weekend then change their rate of overtime pay based on that result.
However if the weekend falls at the end of the overtime week, you can easily setup a premium policy that kicks in if the employee is working on a weekend, and an additional premium policy that kicks in when the employee is working a weekend and has already worked more than 40hrs in the same week. These two policies combined with a regular overtime policy thats active after 40hrs should give you the result you are looking for.
Re: Overtime & shift differentials
Thanks for the advice, shaunw.
That's kind of what I was assuming, and I appreciate the clarification. I have passed this on to the payroll guys, and it turns out that changing to a Monday-Sunday week isn't completely out of the question. They have always done a Sunday-Saturday payweek, but it doesn't look like any of the timeclock solutions available can easily accommodate their payweek/weekend overtime structure.
Thanks for your time and information.
That's kind of what I was assuming, and I appreciate the clarification. I have passed this on to the payroll guys, and it turns out that changing to a Monday-Sunday week isn't completely out of the question. They have always done a Sunday-Saturday payweek, but it doesn't look like any of the timeclock solutions available can easily accommodate their payweek/weekend overtime structure.
Thanks for your time and information.
Re: Overtime & shift differentials
Keep in mind that the overtime week does not need to coincide with the pay week (pay period schedule). The overtime week is simply a cutoff period that is completely separate from the pay period schedule, what the actual days are doesn't matter in most circumstances. In fact if you consider the many millions of companies on a semi-monthly pay period schedule, their overtime week will almost never match their pay period schedule exactly, and it will change each month too, but again it doesn't really matter.
In my opinion changing the pay period schedule to match the overtime week would be over kill and unnecessary unless you have extenuating circumstances that require it of course.
In my opinion changing the pay period schedule to match the overtime week would be over kill and unnecessary unless you have extenuating circumstances that require it of course.