Set up a default overtime pay code to use a different formula to calculate overtime pay. The default overtime calculation calculates time and half on hours worked in excess of the standard 40 hour work week. You can set up an overtime pay code to use a different formula to calculate overtime pay for an employee, department, or an entire organization.

If you set up an overtime override pay code at the employee level, it will override the overtime pay code at the department level. If you're using an overtime override pay code at the organization level, it will override the overtime pay code at the department level. These options give you the flexibility to determine who is assigned to the override pay code and you have the option of setting up more than one overtime pay code. Here's a flowchart that shows you how Connect will choose which overtime override pay code to use to calculate a payroll check. 

Anyone who wants to use a nonstandard formula to calculate overtime can use an overtime override pay code. 

For example, Patricia is the payroll manager for City ABC. She wants to set up a default overtime pay code for the organization. She wants to set up a different default overtime pay code for a department. And she needs to set up another default overtime pay code for an employee. She starts by creating the overtime override pay codes in the Payroll application. When she's done creating the new pay codes, she uses the Timekeeping application to assign the default overtime override pay codes to the organization, department, and employee. 

Setting up an overtime override pay code

1. Open Connect Payroll > Organization > Pay Codes. 

2. Set up a new overtime override pay code. More

Tip! Copy an existing overtime pay code to get started. That way all you have to do is update the parts that you want to change instead of starting from scratch. To copy a pay code, look up a pay code and then click Copy (Shift+F7). 

3. Use the Type menu to select Gross Overtime. 

The pay code type for an overtime override pay code must be set to Gross Overtime.

Payroll Pay Codes - Type

The overtime pay code override menu will only include overtime pay codes if the pay code type is gross overtime. For example, the Overtime Pay Code Override menu in Timekeeping > Modify Existing Employees shows all of the gross overtime pay codes that can be selected as an overtime override pay code. 

Timekeeping - Overtime pay code override menu

4. Assign the overtime override pay code to the same calculation order that you use to calculate regular overtime. 

You can have more than one pay code assigned to the same calculation order. Connect will only use one overtime pay code to calculate an employee's payroll check. It will use the rules, shown above, to choose an overtime pay code. 

5. Do not select the Use As Summarization Pay Code checkbox. 

Payroll Pay Codes - Use As Summarization Pay Code

6. Finish setting up and save the overtime override pay code. 

You have set up and saved an overtime override pay code. The next step is to add the overtime override pay code to an employee, department, organization in the Timekeeping application. Where you add the pay code depends on how you want the pay code to calculate overtime. 

Related topics

How do I set up an overtime override pay code at the organization level?

How do I set up an ovvertime override pay code at the department level?

How do I set  up an overtime override pay code at the employee level?

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