Time & Expense with ESS supports a variety of approaches to overtime calculation, and these approaches can differ from one timesheet class to another. You can set your system up to provide the common time-and-a-half after 40 hours, or you can configure it for more complex overtime requirements such as those for the state of California.
Use the Overtime Hour Rules tab in the Timesheet Class screen to set up overtime validation rules for each of your timesheet classes. You can specify separate overtime rules for weekly, daily, and seventh consecutive work day. The information you specify on this tab is used during time entry to do the following:
Determine if hours entered should be treated as overtime hours based on work hours for the day or week
Verify that overtime hours have been entered for a UDT10 code with the correct overtime rate
Provide the correct level of edit for entries that violate the rules
For details on how overtime on timesheets is validated, see Validations Performed.
In the Weekly group box, indicate if you want soft, hard, or no edits for weekly overtime. If you specify a soft or hard edit, specify the hourly thresholds and overtime factors that apply.
Edit
In Edit, select the level of editing for weekly overtime. This edit level and that for weekly regular hours must be the same. You can change the setting on either tab, and it will be changed automatically on the other tab as well.
These are the available options:
No Edit - No edit based on weekly overtime rules is done.
Hard Edit - Entries are checked based on weekly overtime rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed.
Soft Edit - Entries are checked based on weekly overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections.
Select this check box to have the Deltek Time module include overtime hours already worked when determining whether to apply the regular or overtime rate to new hours worked.
For example, assume that between Monday and Thursday an employee works 32 regular hours (8 per day) and 8 overtime hours (2 per day), for a total of 40 hours. If Include Previous Day(s) Overtime Hours is checked, the Deltek Time module counts the 8 overtime hours already worked when determining whether to apply the regular or overtime rate to any hours worked on the fifth day.
In this example, all hours worked on Friday, the fifth day, are paid at the overtime rate because 40 hours were already worked between Monday and Thursday, even though a portion of those hours were categorized as overtime, not regular.
In this same situation, if Include Previous Day(s) Overtime Hours is not checked, the overtime rate is not applied until the employee accumulates 8 additional regular hours on the fifth day, Friday.
In either scenario, the employee is paid overtime for the two extra hours worked each day between Monday and Thursday, but when Include Previous Day(s) Overtime Hours is checked, all the Friday hours are paid at the overtime rate. When the option is not checked, the first eight hours worked on Friday are paid at the regular rate.
This setting is especially useful for companies who employ workers in California, where overtime rules stipulate that certain classes of employees, such as nonexempt workers over 18 years of age, cannot work more than 8 hours per day, or more than 40 per week, at a rate that is less than one and one-half times their regular pay rate.
The Use check boxes indicate the threshold levels you want to use for determining overtime for a week.
Use is always checked for Level 1, but you can clear the check box for Level 2 if you only have one weekly overtime rate.
A "threshold" is the number of hours for a week beyond which employees are paid an overtime rate. You can use one or two thresholds, each with its own overtime rate.
For example, you might set up the Level 1 threshold to pay overtime at a rate of 1.50 for hours over 40 for the week and set up the Level 2 threshold to pay overtime at a rate of 2.00 for hours over 50.
In Hours Over for each weekly threshold you are using, enter the number of hours beyond which employees are paid the overtime rate for that threshold.
Example: You enter 40 for Level 1 to pay overtime at a rate of 1.50 for hours over 40 for the week, and you enter 50 for Level 2 to pay overtime at a rate of 2.00 for hours over 50.
In Factor for each threshold you are using, enter the rate used to calculate overtime for that threshold.
Example: If you want to pay time-and-a-half for hours over 40 for the week, enter 1.50.
In Week Starts, select the day of the week on which the workweek starts. The week's start day for overtime must be the same as for weekly regular hours. If you change this setting on one of the tabs, it is changed automatically on the other as well.
This entry is also used to determine if an employee has worked seven consecutive days. To be eligible for overtime for working a seventh consecutive day (assuming your company offers such overtime), the employee must have recorded time for each day of the work week, beginning with this day.
In the Daily group box, indicate if you want soft, hard, or no edits for daily overtime. If you specify a soft or hard edit, specify the hourly thresholds and overtime factors that apply.
In Edit, select the level of editing for daily overtime. These are the available options:
No Edit - No edit based on daily overtime rules is done.
Hard Edit - Entries are checked based on daily overtime rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed.
Soft Edit - Entries are checked based on daily overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections.
The Use check boxes indicate the threshold levels you want to use for determining overtime for a day.
Use is always checked for Level 1, but you can clear the check box for Level 2 if you only have one daily overtime rate.
A "threshold" is the number of hours for a day beyond which employees are paid an overtime rate. You can use one or two thresholds, each with its own overtime rate.
For example, you might set up the Level 1 threshold to pay overtime at a rate of 1.50 for hours over 8 for a day and set up the Level 2 threshold to pay overtime at a rate of 2.00 for hours over 12.
In Hours Over for each daily threshold you are using, enter the number of hours beyond which employees are paid the overtime rate for that threshold.
Example: You enter 8 for Level 1 to pay overtime at a rate of 1.50 for hours over 8 for a day, and you enter 12 for Level 2 to pay overtime at a rate of 2.00 for hours over 12.
In Factor for each threshold you are using, enter the rate used to calculate overtime for that threshold.
Example: If you want to pay time-and-a-half for hours over 8 for a day, enter 1.50.
In the 7 Consecutive Day Rule group box, indicate if you want soft, hard, or no edits for overtime when an employee works all seven days of a work week. If you specify a soft or hard edit, specify the hourly thresholds and overtime factors that apply.
In Edit, select the level of editing for overtime for working a seventh consecutive day.
These are the available options:
No Edit - No edit based on seven consecutive days overtime rules is done.
Hard Edit - Entries are checked based on seven consecutive days overtime rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed.
Soft Edit - Entries are checked based on seven consecutive days overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections.
The Use check boxes indicate the threshold levels you want to use for determining overtime for a seventh consecutive day.
Use is always checked for Level 1, but you can clear the check box for Level 2 if you only have one overtime rate for work on a seventh day.
A "threshold" is the number of work hours for a seventh consecutive work day beyond which employees are paid an overtime rate. You can use one or two thresholds, each with its own overtime rate.
For example, you might set up the Level 1 threshold to pay overtime at a rate of 1.50 for any hours worked on an employee's seventh consecutive work day and set up the Level 2 threshold to pay overtime at a rate of 2.00 for hours over 8.
In Hours Over for each seven consecutive days threshold you are using, enter the number of hours beyond which employees are paid the overtime rate for that threshold.
Example: You enter 0 for Level 1 to pay overtime at a rate of 1.50 for any work hours on a seventh consecutive day, and you enter 8 for Level 2 to pay overtime at a rate of 2.00 for work hours over 8.
In Factor for each threshold you are using, enter the rate used to calculate overtime for that threshold.
Example: If you want to pay double time for hours over 8 on a seventh consecutive day, enter 2.00.
