Overtime tracking

Overtime occurs when an employee works more than their scheduled shift hours. Usystems tracks overtime separately so you can apply overtime rates (e.g., time-and-a-half) to payroll. This ensures fair compensation and helps with labor cost forecasting.

Before you start

• Ensure attendance or timesheets are recorded accurately for all employees.
• Confirm your overtime policy (e.g., any hours beyond 8 per day, or beyond 40 per week).
• Define overtime rates in payroll settings (e.g., 1.5x regular rate for weekday overtime, 2x for Sundays).
• You must have HR admin or payroll permissions.

Steps

1. Go to HR → Overtime from the main menu. Open in Usystems

2. Select a date range (e.g., current month) to view or add overtime records.

3. The system may automatically calculate overtime based on attendance and shift records. To manually add or adjust overtime:

   • Click Add Overtime or the plus icon.
   • Select the employee.
   • Enter the date of overtime.
   • Specify the overtime hours and type (regular overtime, weekend overtime, etc.).

4. Fill in the overtime details:

   • Overtime Hours: The number of extra hours worked.
   • Overtime Type: Choose the category (standard, weekend, holiday, emergency, etc.).
   • Reason: Document why overtime was necessary (e.g., "urgent order", "equipment repair").
   • Approved by: Indicate which manager authorized the overtime.

5. Click Save to record the overtime.

6. Review the overtime summary to ensure all hours are captured correctly.

7. When you run payroll, overtime hours will be automatically calculated using the rates you defined.

Accounting impact

Overtime wages are an additional expense. The system multiplies overtime hours by the overtime rate (e.g., 1.5x) to calculate the extra pay. This increases labor costs and is recorded as payroll expense. If overtime is project-specific, it may be allocated to the project cost rather than expensed.

Tips & common mistakes

• Define clear overtime policies: Document thresholds (daily or weekly) and rates so there is no ambiguity.
• Get manager approval first: Always require approval for overtime before it is worked to control costs.
• Use overtime types consistently: Distinguish between regular overtime, weekend, and holiday overtime so reporting is clear.
• Review overtime trends: Monitor overtime regularly to identify patterns and control labor costs.
• Communicate with employees: Make overtime expectations clear so employees understand how they will be compensated.