How are hours over 40 per week distributed

SUGGESTED

When employee has over 40 hours per week, some of the hours are showing as OT1, some OT2 - how is this determined

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    SUGGESTED

    Marsh G

    This is determined based on how the time card was entered.  How an employee is paid depends on what was selected during the time card entry – (PR, Processing, Time Car Entry).  The system will not automatically give someone OT hours if an employee exceeds the regular work week (i.e. 40 hours).  If someone works 42 hours –the hours need to manually be entered as 40 Regular and enter 2 hours for the overtime by selecting Overtime 1 (OT1), Overtime 2 (OT2), or Overtime 3(OT3).

    OT1, OT2, and OT3 are defined by going to PR, Utilities, Maintain Payroll Parameters

    By default, they are set up as below, but the rates can be modified the rates for your company:

    • Overtime (1.50) is calculated as standard overtime or time and a half
    • Overtime (2.0) is calculated at double time
    • Overtime (3.0) is calculated at triple time

    Feel free to also reach out to us via Live Chat at www.sage.com/resources if you have further concerns on your specific issue and how things were processed for your company.

    Sincerely,

    Coleen