Overtime is the number of times (typically 1.5 or 2.0) by which you multiply the regular hourly salary rate, or calculated as a percentage of salary or gross earnings. Overtime is not a benefit.
To specify overtime:
Under Element Definition, provide this information to set up the overtime:
Options Based—Whether overtime can be implemented and paid differently, such as an increased value during statutory holidays. You later define these implementations.
Payment Terms Input—When overtime is paid, such as annually. If you budget by fiscal year (may differ from the calendar year) and want the maximum overtime amount to be paid based on the fiscal year, select Monthly (fiscal year). If your fiscal year is the same as the calendar year, and you want the maximum overtime amount to be paid according to the calendar year, select Monthly (calendar year).
Value Type Input—The amount depending on the maximum value type
Maximum Value Type Input—A fixed amount, or percentage of salary, overall earnings, or taxable earnings.
Allow Value Change Input—Whether planners or cost center managers can modify overtime at the employee or position level.
Maximum Value Input—Depending on the maximum value type:
Number of times by which to multiply salary rate to calculate the overtime
If overtime is calculated as a percentage of salary or taxable earnings, enter the greatest percentage used to calculate overtime
If overtime is paid as a single sum, enter the greatest possible amount
If maximum value type is a percentage of salary, the product annualizes the salary. It then uses the maximum value input value as a percentage to determine the maximum over time amount. For example, if salary is $1,000 Bimonthly(Calendar), (once every 2 months), then the annual salary is $6,000. If maximum value is percentage of salary, and maximum value is 10, then maximum overtime amount for the calendar year is $600.
Earnings Type Input—Whether overtime is included in employee gross pay.
Payment Frequency Input—Whether an employee is eligible for payment annually, semi-annually, quarterly, monthly, and so on. For example, if Payment Terms Input is Quarter(Calendar) and Payment Frequency Input is Pay during last period, the payment amount is in March, June, and so on. If Payment Frequency Input' is Pay during first period, payment is in January, April, and so on.
Element start and end dates—Period during which the overtime applies
Required Input—If overtime must be assigned to all positions
Taxable Component—If overtime is subject to tax
Follows Salary Allocation—To enable users to specify allocation details for overtime, select No.
Specify if overtime is option-based, varying by time or other factor:
In Element Details select Options, right-click, and then select Add Option.
Provide information such as:
Select Option—An available overtime plan
Enter Effective Start Date—When the option applies, such as statutory holidays such as Christmas and New Year
Enter Value—Number of times to multiply pay to compute overtime
Enter Maximum Value—Highest number by which to multiply pay to calculate overtime, or maximum percentage of salary, overall earnings, or taxable earnings used to calculate overtime.
For example, an overtime option for work during the Christmas season could be defined using a start date of Dec. 25, 2011, a dollar value for overtime (1000) or using a portion of bimonthly salary or earnings (.20), and a value or percentage for overtime that cannot be exceeded (1100 or .25, for example).
In Select Operator, select Set to initially define overtime. If you are modifying overtime, the operation that you select modifies the existing value.
To specify the General Ledger account from which funds are allocated to compensation element, click Allocations, select the chart fields or segments, and the allocation percentage.