Overtime is usually a paid event, although in some cases, it can result in Time Off In Lieu (or a mix of the two). Either way, Captureit will calculate overtime in accordance with your rules. This includes applying either daily or weekly rules. Weekly rules normally require the employee to work their total contracted (weekly) hours before qualifying for overtime, whereas daily rules allow overtime to be earned each day, irrespective of what happens on other days.
Companies also vary in the way in which they approve overtime. Some required every instance to be manually approved, whereas others allow automatic approval, usually based on the employee arrival and/or departure times. Captureit covers all options.
This is such an important topic for companies and their employees. Making sure overtime is calculated accurately and paid on time is vital. Having a weekly payroll obviously puts more pressure on the payroll team than does a monthly payroll, but both still require care and attention.
Captureit helps enormously by taking away the manual calculation process, whilst catering for a wide range of overtime scenarios, some of which are covered below.
The point at which an employee qualifies for overtime will depend on your company rules. For example, is overtime paid when an employee clocks in ‘before time’, i.e. in advance of their contracted start time? Most companies would say ‘no’ (it needs approving). Others might say that it would be auto-approved if the employee clocks in, say, more than one hour before their contracted start time.
Captureit can automate this and other scenarios, whilst still being flexible with exceptions to the rule, e.g. we need to exclude ‘Gerry’ from this logic because he arrives early to have his breakfast and read his newspaper. If Gerry actually worked ‘before time’, then a couple of mouse clicks would approve his time to become overtime.
Logic is also best included for end-of-day activity. On the basis that most employees are eager to leave, many companies employ a default whereby an employee working xx minutes after their usual finish time will automatically be deemed to have worked overtime, whilst other companies would always require this time to be manually authorised. Again, the choice is yours.
Understanding when employees qualify for overtime is always of interest. In some cases an employee working extra hours on a day will have these hours credited as overtime irrespective of their attendance on other days that week. This is referred to as ‘daily overtime’.
This contrasts with ‘weekly overtime’, which requires the employee to work their contracted weekly hours before overtime is credited. This means that an employee who worked two hours overtime on one day and then left two hours early on another day would not receive overtime for reason that they had not worked beyond their weekly contracted hours.
There is then the question of how to treat weekend overtime. What happens when an employee was, say, two hours ‘short’ during the week and then works five hours on Saturday? Some companies would pay the five Saturday hours as overtime, whilst others would extract two hours from Saturday to make up for the shortfall in the week, leaving three hours to be paid at the Saturday rate. This is known as ‘overtime clawback’ and is the most common way that companies handle this. Having said that, if there is a general workforce resistance to working on Saturdays, it may be that this is always paid as overtime, irrespective of weekly attendance. You decide.
These are just some of the more common scenarios, but there are many others, all of which can be catered for using Captureit, including situations such as working Bank Holidays at special rates.
When it comes to manually approving overtime this can be handled centrally or at supervisor level. If the latter, the supervisor, would enter Captureit and simply approve the overtime hours with a couple of mouse clicks, with all calculations then taking place automatically. For audit purposes, Captureit records the name of the supervisor, the item that has been changed and the values of that item before the overtime was approved
If this work is to be handled centrally, it is usual for a member of the administration team to print out ‘yesterday’s times’ for each supervisor.
The supervisor then simply annotates the print-out in authorising what should be paid (including notes, if required. In practice, around 80% of Captureit customers work this way, whilst others provide supervisors with direct access to the software so they can carry out any authorisation themselves. In all cases an audit trail is maintained of which person actioned which changes.
The above, and much more, is covered as part of the on-site Scoping Exercise that we always carry out in agreeing with you how Captureit should be configured and helps ensure smooth running of your new system from day one.