Pay types: Overtime

What is overtime?

Overtime is any hour an employee works beyond an 8-hour workday or a 40-hour workweek. Employers must pay hourly employees at least 1.5 times their regular pay rate for every overtime hour worked.

For example, let’s say an employee works 50 hours during a workweek. When you create the paycheck, you enter 40 hours worked and 10 overtime hours worked. We’ll do the math and make sure the overtime is calculated correctly on the employee’s paycheck.

For more information about overtime laws, check the Work Hours: Overtime (United States Department of Labor) website.

To set up an overtime pay type for the employee:

1.     Go top the Employees tab.
2.     Click an employee's name.
3.     In the Pay section, click Edit.
4.     Scroll down to the What additional ways do you pay? section and click to select the Overtime Pay checkbox.
5.     Click OK.

Next time you create a paycheck for the employee, the Overtime pay type appears. Simply enter the overtime hours for the pay period and our payroll service calculates the correct overtime rate.