How the Payroll Process Allocates Overtime Earnings

Allocation is the process of attributing income to the overtime period during which it was earned, even if the payroll run spans multiple overtime periods.

For example, a payroll run includes two overtime periods: January 01 to 07 and January 08 to 14. The Date Earned for the element entry is January 08. Therefore, the payroll process creates no results for January 01 through 07, and instead, it allocates the overtime earnings to January 08 through 14.

If you don't specify an Earned Date, then the payroll process allocates the total overtime amount between the overtime periods.

The process determines the number of allocated Overtime Periods for the assignment and pay period based on the calendar days. Then it allocates the earnings accordingly. A pay period can have several contributing overtime periods with a length of any number of days.