In this article you'll learn how to pay out overtime compensation to employees by selecting hours, setting payment details, and choosing a variable payment type. This feature allows you to process overtime payouts individually for your employees with customizable gross salary rates and payment dates. This article is relevant for HR administrators who need to manage overtime compensation payouts in the system.
Go to Settings > Employee fields > Compensation > Variable pay types
Click Add variable pay type button
Enter the desired name and click Save
Paying out overtime
Please follow the next steps:
Under People > Select an employee > Attendance, click on the Actions button
Click on Pay out overtime under Overtime Actions
Once you fill in the fields, click Save
Following are the fields that need to be filled:
Select amount of hours to be paid (required): Enter the amount of hours that you would like to pay out from the overtime balance. Once you fill this field, the balance will be displayed on the screen.
Current gross salary per hour (required): This will be automatically populated by the system but you can also enter a different value depending on the scenario
Select the variable payment type (required): Choose a variable payment type from the drop-down
Select the variable payment date (required): Pick a date to define when the pay out should happen
Comments (Optional): Add any comments for reference
Note: Bulk actions can't be performed in paying out overtime compensation.
To know how to convert overtime to time off for your employees, please refer to the article Converting overtime to time off.