How to Automate Overtime Calculations in Payroll

Overview
Automating overtime ensures every extra hour is calculated and included in your next payroll run without manual intervention.

Step‑by‑Step Instructions

  1. Under Payroll → Settings → Payroll Settings, ensure you’ve defined all relevant Salary Components (e.g. “Overtime Earnings”).

  2. In Payroll → Settings → Overtime Settings, verify each Pay Code and Overtime Policy is active.

  3. Go to Payroll → Payroll and check the Use Attendance and Add timelogs to salary boxes when generating payroll.

  4. Select your Salary Cycle, Year, and Month, then click Generate.

  5. The system will pull approved overtime entries and apply the correct pay rate automatically.

Tips

Troubleshooting & FAQs