Overtime is a lump sum amount of additional salary given to an employee. We setup several payroll items, Automated Overtime Payroll Items which automatically calculates OT based on hourly wages times the OT multiplier, and Manual Overtime Payroll Items which allow you to either add the total amount manually (lump sum) or calculates the wage based on hours/days you key in.
You find all payroll items under +Additional Payroll Item > Remuneration.
Note: If the OT payroll item is non-recurring you may add it in Step 1 of running payroll, OR in case an employee gets OT on a monthly basis (recurring), the OT payroll items should be added under Employees > Select Employee > Employment Details > + Recurring Payroll Item. Leave the unit/hours field set to 0, you can then enter the hours/days accordingly when running payroll every month. See our Help Article for further info on recurring/non-recurring payroll items.
a. Automated Overtime Payroll Items
We’ve pre-setup three OT payroll items that auto-compute the hourly RM rate based on the employee’s salary. If the employee get’s a monthly salary the hourly rate is computed based on the number of days (working days/fixed days/all days) set under Settings > Payment Settings. For all calculations we follow eight daily working hours. The formula’s are as follows:
Based on that hourly rate we have pre-setup three OT payroll items that are commonly used:
You can also Custom Overtime Payroll Items that allow you to set your own OT rate for auto-calculations, see this Help Article to learn how to set these up.
b. Manual Overtime Payroll Items
We’ve setup two additional OT payroll items that allow you to either add a lump sum amount or manually key-in the hourly rate and the number of hours/days:
This help article was compiled for version 0.40.5 of app.payrollpanda.my
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