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Overtime in payroll

Summary

Overtime is paid as other income in the pay cycle and does not change Working Days. On the Income sidebar, overtime lines display the payment amount, rate, hours, hourly rate, and description.

For hourly employees, overtime hours are removed from Total Worked Hours so the same hours are not paid twice through basic hourly pay and overtime.

In this article

  • Before you begin
  • Opening the pay cycle
  • Finding overtime on Income
  • What overtime does and does not change
  • After you change overtime
  • Frequently Asked Questions (FAQ)

Before you begin

You must have an active Payroll add-on to access and use Payroll features.

You need:

  • Company Money access
  • View Pay Schedules permission
  • Start Payrun permission

To add income to the pay cycle, you need Add Income in Payrun permission.

Overtime must exist as an overtime income line for the employee in the current cycle. Payroll treats an income line as overtime when it is an overtime request using a default addition pay code.

This article covers how overtime is handled within Payroll. It does not cover the overtime request process outside Company Money.

Basic pay continues to be calculated according to the employee's pay type:

  • Salary employees use Worked/Working Days for basic pay.
  • Hourly employees use Payrate × Total Worked Hours for basic pay.

Overtime is added on top of the employee's basic pay.

Opening the pay cycle

Log in to Plumm and open the 9-dot menu.

Under Money, select Company Money.

Open an Active location and go to Pay Schedules.

Open an Active schedule, then select Start Pay run or Continue Pay run.

If the banner displays We noticed there's been some changes to this pay cycle, select Recalculate.

Open Salaries > Income.

Finding overtime on Income

Open the required employee from the Income grid.

Other income lines are displayed in the employee sidebar.

An overtime line displays the pay name and the overtime request date in the heading.

Amount

Displays the overtime payment for the current cycle.

You can edit Amount.

Rate

Displays the overtime rate.

This field is disabled and cannot be edited.

Hours

Displays the overtime hours.

This field is disabled and cannot be edited.

Hourly Rate

Displays the hourly rate used for the overtime line.

This field is disabled and cannot be edited.

Description

Displays the description for the overtime payment.

You can edit Description.

You can also select Delete from the more menu to remove the overtime line.

Select Save after making changes.

Overtime totals are included in:

  • Other Income
  • Taxable Other Income or Non Taxable Other Income
  • Total Income

Whether overtime is included as taxable or non-taxable other income depends on the pay code Tax setting.

If overtime is adjusted, Updates can display a warning. The stored message starts with Overtime adjusted for, followed by the employee's name.

The confirmed Type label for this warning is Time Off.

What overtime does and does not change

Working Days

Overtime does not change Working Days.

For salary employees, Current Cycle Salary continues to be calculated from Worked/Working Days and the Pro Rata Rule.

Overtime is then added separately as other income.

Hourly employees

For hourly employees, Payroll removes overtime hours from Total Worked Hours before calculating basic hourly pay.

Basic hourly pay is calculated as:

Payrate × Total Worked Hours

The overtime amount is then added separately as other income.

This prevents the same overtime hours from being paid once as basic hourly pay and again as overtime.

Court orders

Overtime is included in attachable income used for court orders, together with bonus, commission, and SSP, where the relevant default addition codes apply.

Overtime dates

Overtime dated outside the pay cycle start and end dates is not included in the cycle.

An overtime line can still be included when its overtime request date is empty.

After you change overtime

If overtime changes after the pay cycle has been opened, go to Updates and select Recalculate.

Return to Income and check the employee again.

Total Income should include the overtime Amount.

Continue to Review and Process the pay run as normal.

After Process Pay Run, overtime on the Completed cycle is locked.

If overtime needs correcting after the pay run has been processed, correct the overtime information first, then undo the pay run if you have Undo Payrun permission.

Frequently Asked Questions (FAQ)

  • Does overtime increase Worked/Working Days?
    No. Working Days remain calculated from the schedule and attendance. Overtime is added separately as other income.
  • Why did Total Worked Hours go down when overtime was added?
    The employee is hourly. Payroll removes overtime hours from Total Worked Hours and pays those hours through the overtime income line instead. This prevents the same hours from being paid twice.
  • Can I type overtime hours on Salaries?
    No. Hours, Rate, and Hourly Rate are disabled on the overtime line. You can edit Amount and Description, then select Save.
  • Where does overtime appear on the grid?
    On Income, overtime is included in Other Income and Total Income. There is no separate Overtime column.
  • What if I cannot add overtime?
    You need Add Income in Payrun permission. The overtime pay code must also exist as a default addition code for overtime requests.