About overtime compensation through Payroll

Compensate employees' overtime through a payroll supplement

To activate overtime compensation through Payroll

  1. On your sidebar, go to Settings
  2. In Time, select Time tracking
  3. Select the Time tracking policy
  4. Open the Preferences tab
  5. Scroll down until you find Overtime compensation
  6. Activate Payroll compensation
payroll compensation copy

💡 Things to take into consideration

Only the balance corresponding to reviewed and approved months can be compensated via payroll.

Payroll and Time off compensation can work simultaneously. The only requirement is to enable and define a balance limit.

  • The balance can be automatically compensated with time off according to the rules you define, and the time exceeding the limit can later be manually compensated with payroll.
  • In the absence of a limit, all overtime accrued in the balance would be automatically compensated with time off.



How to compensate overtime

  1. On your sidebar, head to the Time Tracking section
  2. Select the employees whose balance you want to compensate through their payslip
  3. Review and approve the employees’ timesheets
  4. Repeat the same employee selection
  5. Click on Compensate overtime through payroll
  6. Select a payroll period to add the supplement for overtime compensation: Current or Following period
compensate through payroll copy

💡  Things to take into consideration

  • In case the balance carryover is activated, only the overtime accrued in the selected period will be compensated.
  • You can check the time available to be compensated in the tooltip of each employee's balance number.
  • The system generates an incidence if there is any conflict that prevents the generation of an automatic supplement in an employee's payroll. In such cases, admins will receive an email with the error report.



How is the overtime info displayed in the timesheet

  1. On your sidebar, go to Time tracking
  2. Open the Approved tab
  3. Click on the arrow to open the timesheet of an employee
  4. Open the Balance tooltip which shows how much overtime has already been compensated with payroll
balance breakdown copy


How is the overtime info reflected in the Payroll app

  1. On your sidebar, head to the Payroll app
  2. Open Cycles
  3. Select the period and click on Supplements

There you will see the additional supplements. The overtime to be compensated with payroll is expressed in units.

💡 Supplements will be added automatically only once the overtime compensation is confirmed in the Time Tracking section.



Screenshot 2023-10-03 at 13.18.30

How to manually add overtime to Payroll

  1. On your sidebar, go to Payroll
  2. Go to Cycles
  3. Open the Payroll policy
  4. Go to Supplement definition status
  5. Click the + icon next to the employee's name.
  6. Choose Overtime as the Supplement type.
  7. Specify Time as the type.
  8. Enter the amount of overtime (hh: mm format)
  9. Click the check icon to validate it
add supplements

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