Overtime Management in TimeMoto Cloud

Note: Can't find this in your Cloud? This feature is available with the Essential or Plus Plan of TimeMoto Cloud. If you want to get the most out of your TimeMoto account, make sure to upgrade your plan to your needs!

Overtime management depends primarily on the legal regulations and the contractual conditions of a business. Some contracts stipulate a certain number of overtime hours, which are still included in the standard salary gross. Some pay overtime at a higher hourly rate. Others don't pay overtime at all and rather compensate them with extra time off. In this article, you will learn how you can manage overtime in TimeMoto Cloud. We answer basic questions about overtime, pay categories, and reports, as well as the settings you can adjust to process your exceptionally paid working time.

What is Overtime?

Overtime is working time that exceeds the contractual or collectively agreed-upon target working time and is (or can be) paid separately. For example, if an employee has to work 40 hours a week but has actually worked 45 hours, you can add up to 5 hours worth of overtime to their payment.

Overtime Management without a pay template

If you don't assign a pay template to your employee but a schedule, TimeMoto Cloud will automatically calculate every excess work as "excess hours" and add it to the Flexibank balance. This way, you can always keep track of the current additional hours and the accumulated additional hours of your employee.

You can review all of this in the Timesheet by clicking on the column button and add (on or more of) the additional columns to your Timesheet:

• Previous Flexibank: Shows the Flexibank balance of the day before the current report begins
• Accumulated Flexibank: Shows the accumulated Flexibank balance of the currently displayed period.
• Flexibank Current Total: Shows the current total of the Flexibank balance available.

As soon as you assign a pay template to the employee, this automatism will be stopped and replaced by advanced overtime management.

Pay Templates and Overtime

Before you can manage any overtime in your pay reports, you have to define in TimeMoto, what is considered overtime in the first place. For this, you use the pay templates in the Pay and Overtime settings.

Example: Your employee's contract defines a set number of hours per week as the standard working time. Everything above these hours is considered overtime.

For this you create a pay template and add a rule that says "more than scheduled." The contract says it would double the payment for overtime, so you can set a factor of 2. This will change the hourly rate only when it is defined as exceptional payment. (You can also keep the factor at one, if there is no increased payment intended.)

Once you assign a pay template to an employee, they can clock their time as usual. At the end of your pay period, you can review the reports.

Timesheet

The timesheet only documents the employee's worked hours, timestamps, and the planned absences. If you want to check the time balance, use this report type. However, with timesheets, you don't manage overtime any further. In the same sense, your overtime management won't affect the timesheet balance. The timesheet balance will not be carried over to the next report period.

Pay Reports

In the pay report, you can check the total payout of regular working time and exceptional working time. It should work as a preparation for your payroll. Exceptional working time will also contain your Overtime, according to the settings in your pay template.

Pay reports display the calculated payout in different pay categories

Once you have closed the pay period, click on the icon of your "Overtime" pay category to manage the overtime further. It is marked with a clock symbol. 

A window will appear. You can choose between three ways of settling overtime:

• Pay out overtime: Add the additionally worked time to the payment total of the employee.
• Flexibank: Add the additionally worked time to the employee's Flexibank balance. It can be used later on for paid absences (instead of the vacation/holiday budget) to compensate for the overtime.
• Ignore overtime: Some contracts define a specific amount of overtime paid with the regular salary gross. You can delete time that is neither added to the payout nor the Flexibank.

Great! Once you have assigned all the hours, click "Approve" to process the overtime. You have now managed the overtime of the employee!

Note: It is very important that the Total equals to the duration of exceptional working time that you are processing. If the total is not equal, the hours are displayed in red numbers. If it is equal the hours are displayed in regular black.

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