Create an additional overtime pay item

Set up an additonal pay item so you can pay employees at their overtime work rate, while also maintaining their leave accruals.

  1. In the Settings menu, select General Settings.
  2. Under Features, click Payroll Settings.
  3. Click the Pay Items tab.
  4. Click Earnings.
  5. Under Add, select Overtime Earnings or Ordinary Time Earnings.

    Image showing the pay type list under the Add button.

  6. Enter the pay item details as follows:
    • Earnings Name - Select Overtime.
    • (Optional) Display Name - Enter a display name to display next to this pay item in the employee’s payslip.
    • Rate Type - Select Multiple of Employee's Ordinary Earnings Rate.
    • Multiple - Enter the overtime rate. For example, if you pay your employees an additional 20% on top of their ordinary hourly rate to work Saturdays, you should enter a rate of 1.2.
    • Expense Account - Select an account. For example, Wages and Salaries.
    • Select the Accrue Leave for this Earnings Rate checkbox.
  7. Click Add.
  8. If this is a recurring pay item, add it to your employee's pay template template so it's included in each pay run.

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