Creating an Overtime Rule

To create an overtime rule:

Select Tools > Lists > Overtime. The Overtime Setup dialog box appears.

Click New Rule. A new line item appears.
The Active check box is selected by default. Deselect it now if you do not want this overtime rule to be actively used in ServiceCEO.
Type a name for the new rule in the Name field.
Enter the rule's overtime pay rate in the Hourly Rate Multiplier field. The employee's normal pay rate will be multiplied by this number to determine their pay rate for the rule. For example, the Over 40 rule is designed to pay the employee one and one-half times the amount of their normal pay rate.
Select the rule type from the Rule Type drop-down list. This field defines what exactly sparks overtime pay. The rule types are described below.
- Hours per Day. Defines pay rate for workers that work more then a defined number of hours per day.
- Hours per Shift. Defines pay rate for workers that work more then a defined number of hours per shift.
- Hours per Week. Defines pay rate for workers that work more then a defined number of hours per week.
- Hours per Pay Period. Defines pay rate for workers that work more then a defined number of hours per pay period.
- Days per Week. Defines pay rate for workers that work more then a defined number of days per week.
- Days per Pay Period. Defines the pay rate for employees that work more then a defined number of days per pay period (as defined in the Payroll Setup Wizard.
- Day of Week. Defines pay rate for workers that work on a defined day. For example, in Ireland, some workers receive overtime pay if they work past 3:00 PM on a Saturday.
- Holiday (specific date). Defines pay rate for workers that work on a defined holiday. See the Defining Holidays section for more on holidays.

Note!

Note:
Before you can use the Hours per Pay Period or Days per Pay Period rule types, you must first define your pay period. See the Defining Payroll Options section for details.

Tip!

Tip:
Depending on the Rate Type you select, the fields in the Selected Rule Properties section will vary.

Select the Only count consecutive days/hrs? check box to only count hours or days that have no gap between them against overtime considerations.

Tip!

Tip:
ServiceCEO gives you a ten-minute gap leeway for consecutive hour calculations. Thus, if one job ends at 11:15 and the next job starts at 11:25, both jobs could count towards overtime consideration.

The Pay OT for entire shift, even if it extends into another day/week/period? field, available for all rate types, would pay the employee overtime rates for the entire job, even if the job extends into another Day/Week/Pay Period.
The Apply this rule when the individual works over: x hrs field defines the limit beyond which overtime rates apply for the hours per shift and hours per week rate types.
The Pay OT only after a specific time field defines the time beyond which overtime rates apply for the day of week rate type.
To integrate an overtime rule with an accounting account:
- Click the Accounting tab.
- Click Select Payroll Expense/Debit Account. The General Ledger Account Links dialog box appears.
- By default, this overtime rule will be integrated with the Default Payroll Expense Account as selected in the payroll integration section of the Company Information Options dialog box. See the Integrating Accounting section for more details. To change the default, type in the Account field and type the name of the new accounting account.
- Click OK.
Repeat steps 2-11 to add additional overtime rules.
Click OK.

Back to Defining Overtime Rules