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.
- In the Settings menu, select General Settings.
- Under Features, click Payroll Settings.
- Click the Pay Items tab.
- Click Earnings.
Under Add, select Overtime Earnings or Ordinary Time Earnings.
- 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.
- Click Add.
- If this is a recurring pay item, add it to your employee's pay template template so it's included in each pay run.