Manage Overtime

Modified on Mon, 10 Feb at 12:39 PM

The Manage Overtime page allows you to view all employee overtime records, filter specific data, and see detailed amounts. You can also add new overtime transactions, create overtime batches as income, import overtime batches, and convert overtime into vacation balances.

How to Add Overtime Type

To add overtime types, go to User Menu → System preferences → Financial Setup → Financial Transaction Types → Overtime Types

Then, on the Overtime Types page, click on the “Add Overtime Type” button.

To add a new overtime type, enter the following information:

Enter the Name of this overtime type
Select the rule that applies to this overtime from the available options (All Days, Holiday, Weekday, or Weekend). You can assign a different overtime types for each of these options. When adding overtime for employees, ZenHR will automatically apply the default overtime rule based on the selected dates, but you can modify it as needed.
Select the Basic salary rate per hour. The employee’s basic salary’s hourly rate will be multiplied by this amount for each hour of overtime.
Select the allowances that will be included in the overtime calculation.
Once allowances are selected, you can fill in the Allowances rate in hours.
Fill in the GL identifier and clearance account for this overtime type if you have an active financial integration.

Overtime Exceptions

Using overtime exceptions, HR admins can set different overtime rates based on company policy. The system will automatically calculate the values accordingly. To add an exception, click “Add Exception”, select the applicable day and hours, and then choose the hourly rate for the basic salary and allowances for that exception.

Other Settings

Activate the box “Ability to request” if you would like to allow your employees to be able to request this overtime type.
Select if you want to Make attachments mandatory.
Select if you want to Make notes mandatory.
Activate the Out-of-payroll option to make all approved overtime requests off-cycle by default. If this option is not activated, approved overtime requests will be added as in-payroll transactions along with the regular salaries.

Once done, click on the Create Overtime Type button.

Overtime Calculation Setup

To customize how you would like your overtime to be calculated, go to System Preferences → Financial Setup → Payroll Setup

Scroll down to the Overtime Calculation section, select the Overtime calculation base, and then select if you would like to Calculate overtime based on work shift. Otherwise, the overtime will be calculated based on the branch’s working hours, which are defined in the branch setup.

How to Add Overtime Transactions for Employees

Go to Main Menu → Payroll → Manage Financials → Manage Overtimes
Click on the “Actions” dropdown and select “Add Overtime Transactions”.

In the Add Overtime page, select the employee name from the drop-down menu.
Select the overtime duration.
ZenHR will automatically calculate and display the Total Hours of Overtime.
The Overtime type, based on the selected duration, will be pre-selected by default, but the user can change it if needed.
The system will calculate the Amount for the employee based on the defined Overtime Calculation Setup and the employee's details.
Select the Effective date for this overtime.
Activate the Out-of-payroll checkbox if you want this transaction to be off-cycle and not included in the employee’s salary.
Add any Notes and Attachments if needed.
Then click “Create Overtime”.

Example:

Calculation Base: 30

The "Calculate overtime based on work shift" option is activated.

An employee with an 8-hour work shift, a basic salary of 10,000 SAR, and an overtime rate of 1.5 works 3 hours of overtime.

The overtime amount would be calculated as follows:

Basic Salary/ Calculation Base / Employee’s Working Hours ✖ Basic salary rate per hour ✖ Overtime hours.

10,000/30/8✖1.5✖3=187.5 SAR

If the overtime is included in the payroll and the effective date is August 14, 2024, the overtime amount will be reflected in the employee’s salary slip for August.

Note: If you have a branch with ZenHR’s salary gross-up feature activated, overtime amounts will not appear on the Manage Overtime page, as they are calculated during the salary calculation process.

Add Overtime Batch As Income

ZenHR allows you to add selected overtime hours as a financial transaction of your choice. This can be done for a single employee or through an importer for multiple employees.

Add Overtime Batch as a Financial Transaction for a Single Employee

To do this, go to the Manage Overtime page, click on the “Actions” drop-down, and select “Add Overtime Batch as Income”. This will take you to the Add Overtime Batch as Income page.

Select the employee name from the drop-down menu for whom you would like to add these overtime hours.
Choose the Effective date for the transaction.
Enter the number of overtime hours you wish to add as a financial transaction.
Select the Overtime type from the drop-down menu; the selected overtime rates will be used in the amount calculation.
The amount will be calculated automatically.
Choose the financial transaction from the Income type drop-down menu.
Add any notes and attachments if needed.
Then click on “Create Financial Transaction”.

The overtime is now added for the employee in the selected financial transaction type and can be found on the Manage Financial Transactions page.

Add Overtime Batch as a Financial Transaction Importer

The overtime batch importer allows you to import multiple overtime transactions into ZenHR and add them as financial transactions in a few simple steps.

In the Manage Overtime page, click on the “Actions” button and select “Import Overtime Batches”.

In the pop-up that appears, click on “Download Template” for the Excel sheet template.

In the Excel template, fill in the employment numbers, the effective date for each overtime entry, the number of overtime hours, and any notes if needed.

Once completed, import the Excel sheet on ZenHR. Select the Overtime type, whose rate will be used to calculate the amounts for these hours, and choose the financial transaction type to which these amounts will be added. Then click on “Import”.

The overtime amounts will then be recorded as financial transactions on the Manage Financial Transactions page.

Convert Overtime to Vacation Balances

You can convert your employee’s overtime to vacation balances through the Manage Overtime page. This can be done for a single overtime transaction or for multiple employees meeting certain criteria.

Convert a Single Overtime Transaction to a Vacation Balance

On the Manage Overtime page, find the overtime record for the employee that you would like to convert as balance. Note that this action cannot be done for pending requests. Select the convert button in the actions column for this record.

On the Manage Overtime page, locate the overtime record for the employee whose balance you want to convert (Note: this action cannot be performed for pending requests).
Under the Actions column, click“Convert” beside the desired record.

In the pop-up that appears, select the leave type and vacation type you want to convert this overtime into.
Select the rate for this conversion (For example, if you select 50% and the overtime you wish to convert is 3 hours, only 1.5 hours will be converted into a vacation balance).
Select the Effective on field.
Add any notes if needed.
Then click on “Convert”.

Mass Conversion of Overtime Transactions to Vacation Balances

You can use ZenHR’s mass conversion to easily convert all employee overtime hours that meet certain selected criteria into vacation balances. Go to the Manage Overtime page, click “Action,” and from the dropdown, click on “Convert Overtime to Vacation Balances”.

Filter the specific transactions you wish to convert by selecting work locations, departments, sections, or main projects.
Choose the overtime 'from' and 'to' times for which you want to apply the conversion.
Select the time off type into which all qualifying overtime hours will be converted.
Specify the conversion rate.
Set the effective date for the conversion.
Define the minimum total hours for conversion. Overtime less than this amount will not be converted, even if it meets the other criteria.
Add any notes if needed.
Then click on” Convert”.