To set up the overtime calculation:
Select Employees, click the cog button on the right side of the employee form.
Click Employee Settings, then Overtime Settings.
In Max Pay to calculate OT, choose between 4000.00 and 10,000.00. This is the ceiling rate at which OT Rate of pay is calculated.
Select Edit to edit information on this screen and click Save to complete the changes.
Select Payroll. click Actions and click Edit Normal Pay. In Overtime, input the Days/Hours worked.
Click Save and close actions.
Click Process Pay.
Sample Calculation for Overtime Rate 1.0 and 1.5
How to get the overtime rate:
BRate x 12 / 2496 x 1.0 = Overtime rate per hour
Brate x 12 /2496 x 1.5 = Overtime rate per hour
Example: Basic rate is RM2300
BRate x 12 / 2496 x 1.0 = 11.06 per hour
Brate x 12 /2496 x 1.5 = 16.59 per hour
Max Pay to calculate OT = 2000.00
BRate x 12 / 2496 x 1.0 = 9.62 per hour
Brate x 12 /2496 x 1.5 = 14.43 per hour
How to use the Overtime Ratio by minutes and hours in Payroll?
Calculations in Numerics of 0.00 and above will be shown in the system. For example:
You can set an interval of every 3 minutes:
0.05 is 3 minutes.
0.10 is 6 minutes.
0.15 is 9 minutes.
0.20 is 12 minutes.
If an employee has worked for 9 hours and 37 minutes overtime, you may choose to select
0.60 as 36 minutes, or
0.65 as 39 minutes.
Notes:
If you choose to calculate 37/60 minutes overtime, it will derive a numerical value of 0.616666...with an infinite decimal calculation. So, it is not possible to calculate with some numbers. The smallest interval would be every 3 minutes, which has no decimal values; that is difficult to calculate.
To make the calculation simple, you can choose to set 37 minutes in Numerics as 0.61 or 0.62, rounded down or up.
Hence, at 9.62 hours, you should interpret it as 9 hours and 37 minutes.