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11245: Overtime for Hourly Employees - Setup and Payroll Calculation (CWU)


CWU Payroll Generally

CWU: How do I set up to calculate overtime for an hourly employee? What about multiple pay rates?

Setup

To prepare employee payroll with overtime, you must have set up the basic employee information. For help on this, see "How to Set Up Employee Payroll" in Related Links at the bottom of this page. Note that overtime is not available for salaried employees.

For overtime setup, review these options:

Employees > Account & Payroll Information > Payroll Option tab: Consider the option Store all overtime pay separate from regular pay.

  • The option is unselected by default, which results in a separate display of Overtime Premium for overtime hours (the difference between the regular and the overtime pay rate).
  • Selecting the option results in a separate display of total Overtime Pay for overtime hours.

For more information on this option, see "Hours Report Not Displaying Full Overtime Amounts" in Related Links.

Employee > Employee Setup > Payroll Wages/Rates tab: Click to select an employee. These options must be set individually for each employee.

Pay Class – select Hourly for an hourly employee.

Pay Frequency – select the option appropriate for the employee.

Overtime Factor – the software defaults to an Overtime Factor of 1.5. You can enter a different factor.

  • The factor applies only to the selected employee.
  • The factor applies to Pay Rate 1, unless you enter additional pay rates.

Pay Rate 1 – enter the appropriate pay rate. This rate will be used to calculate regular and overtime pay, unless multiple rates are entered.

Additional Pay Rates – select this option to enable additional pay rate fields. If you select Additional Pay Rates:

  • You must indicate here which pay rate to use for overtime (Use Pay Rate ... for OT Rate).
  • You must enter hours worked for each pay rate when you prepare payroll, discussed below.

Click Save to save changes for an employee and then proceed to the next employee.

Preparation of overtime payroll

Go to Employees > Live Payroll or ATF Payroll.

Employee with a single pay rate only.

The Rates and Hours section displays in Rate One the Pay Rate 1 that you previously set up for the employee. Payroll calculation is based on the Regular Hours field (see below), so the Hours field for Rate One is not enabled. Rate One

  • can be edited as an override,
  • is used as the basis for current payroll for the employee, and
  • is applied against the Regular Hours field.

Employee with additional pay rates.

The Rates and Hours section displays all the pay rates that have been entered for the employee. The Hours field for each pay rate is initially displayed as zero. All fields are editable as overrides. When multiple pay rates have been set up for the employee

  • Hours must be entered for each pay rate. Do not include overtime hours.
  • Results in the Earnings Grid are based on the Rates and Hours section (editing the Regular Hours field no longer affects Earnings Grid results).

Overtime – all employees.

Enter overtime hours in the Overtime Hours field on the left of the screen (do not include overtime hours in Regular Hours).

  • The required overtime amount is calculated and displayed in the Earnings Grid. The overtime rate and the pay rate to which it applies are what you previously set up for the employee.
  • Overtime hours and pay will be displayed in the Hours Report – Employees (Reports > 11 – Employee Reports)

Note: If you directly edit overtime in the Earnings Grid, overtime hours and pay are not displayed on the Hours Report – Employees. To maintain report integrity, enter overtime hours as directed above.

For a video overview of Employee Payroll in CWU, including setup, see CWU Employee Payroll.


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