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Overtime Compensation with Payroll

Compensate employees' overtime through a payroll supplement

😀 Remember!

Enable the feature from the Time Tracking app settings to compensate overtime automatically with time off and/or manually through a payroll supplement. 

How to set up the feature

  • Go to Apps
  • Scroll down to the Time Tracking app and click on the Settings tab
  • Select a Time Tracking Policy
  • Click on Preferences
  • Enable the toggle for Payroll Compensation 


⚠️ 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.

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How compensation works

  1. 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


⚠️ 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 be able to receive an email with the error report.

How is the info displayed in the timesheet

  • Go to the employee timesheet in the Clock In section
  • Open the Balance tooltip which shows how much overtime has already been compensated with payroll

How is the info reflected in the payroll app

  • Head to the Payroll app
  • There you will see the additional supplements created for the selected payroll period. The overtime to be compensated with payroll is expressed in units.
  • The supplement will be added automatically only once the overtime compensation is confirmed in the Time Tracking section.