Overtime in Time and Attendance Software
When you look for a new Time and Attendance software, one of the factors you should consider is how the software handles overtime calculations.
Most hourly paid employees get paid for overtime if they work more than their typical hours. There are few types of overtime calculations:
- Weekly overtime – For example, if an employee works more than 40 hours per week he/she gets paid at an overtime rate for the additional hours. Or if an employee works more than 60 hours per week, he/she gets paid double overtime rate for the hours exceeding 60 hours. In this case, it does not matter how many hours employee worked each day or how many days he/she worked in a week. Only the total number of hours per week is relevant for those calculations.
- Daily overtime – For example, if an employee works more than 8 hours per day, he/she gets paid at overtime rate for the additional hours or if an employee works more than 12 hours per day, he/she gets paid at double overtime rate. In this case, employee may work 7 days per week, 8 hours per day and still not get paid overtime because he/she did not exceed their daily limit.
- Mixed overtime – This is a combination of weekly and daily overtime. For example, an employee gets paid overtime or double overtime if he/she works more than 8 hours or 12 hours per day respectively and also if he/she works more than 40 or 60 hours per week respectively.
In addition, the daily and weekly overtime and double overtime limit may be different from company to company. In most cases it is governed by laws of each Country or State/Province. For example, in Ontario, Canada employer must pay overtime if an employee works more than 44 hours per week, but in Quebec or British Columbia, employer must pay overtime after 40 hours per week.
A good Time and Attendance software should have flexible settings to allow the user choose the type of overtime setting they need and allow them to specify the number of hours when overtime or double overtime gets paid. In addition, the Time and Attendance software which supports multiple companies should allow the user to select these settings for each company. This is particularly important for large corporations which have have locations in different States or Provinces, or even Countries. Such organizations need to be able to specify different overtime settings for each company based on their location.
In Midex Time Control, we make it all possible. You can choose to not to use overtime, or use weekly, daily or mixed overtime mode. You can also choose to use double overtime calculations. Then, you can set the specific number of hours for overtime and double overtime. Finally, if you are using Premier or Enterprise editions of Midex Time Control, which support multiple companies, you can set different parameters for each company.
At the end of the day, when you run your Time Card Report, you will see all hours separated. This allows you to easily process your payroll.