This window allows you to define what "Overtime" means based on your local and state labor laws. There are some rules that are consistent wherever you operate, and those rules are hardcoded into the process. However, you can define whether daily OT and weekly OT is paid and, the thresholds. With these rules defined, SchoolLeader will automatically calculate OT hours when producing any Wage or Attendance reports. These numbers can be used to accurately feed your payroll system.
Variable length pay periods that are not based on a traditional 7 day week (e.g. bi-monthly on 1st & 15th), must be calculated manually by you. The laws for calculating OT in this situation can vary from state to state, but typically you will need to consider hours worked from the prior pay period if a contiguous 7 day week has been split across two pay periods. This can typically happen if the 1st or 15th fall in the middle of a week since the periods are not divisible by 7. To simplify payroll, you may want to consider paying in 7 day increments either weekly or semi-weekly
This field allows you to specify the number of hours in a given day that is considered "Standard" work hours. Anything above this threshold would be considered "Overtime" hours.
SchoolLeader always considers a week as 5 work days and 2 off days. Therefore, if you want to define a weekly Overtime threshold of 40hrs you would enter "8" in this field since (8x5=40). Even if you don't plan to pay using traditional pay periods (Sunday - Saturday), these rules will still work for you in determining the straight and overtime hours.
Check this box if you want to have SchoolLeader calculate overtime whenever the employee works over a specific amount of hours in a day.
Rule: If this box is checked the "Enforce Full Period..." checkbox is automatically checked.
Check this box if you wish to have SchoolLeader calculate overtime whenever the employee works over a specific amount of hours in a pay period (not by the day, but by the pay period). If you need to check this box, then first uncheck the Enforce Daily Overtime Thresholds box.
Example 1:
You want to calculate employees' overtime if they work more than 8 hours in a day, regardless of their total hours for the week. In other words, someone can work 10 hours in one day, and they will receive 2 hours of overtime even if that is the only day they worked the entire week.
Solution and Overtime Rules Setup:
Set Daily Overtime Threshold = 8
Check "Enforce Daily Overtime Thresholds" box
Example 2:
You want to calculate employees overtime if they work more than 35 hours in a week but not if they work excessive hours in a particular day. In other words, a long 10 hour day does not result in overtime unless they worked additional hours that week to exceed the 35 hour threshold.
Solution and Overtime Rules Setup:
Set Daily Overtime Threshold = 7
Un-Check "Enforce Daily Overtime Thresholds" box