Configure and change advanced overtime settings in QuickBooks Time

Before you get started, there are a few things to keep in mind:

• Only account administrators can set up overtime pay rates.
• A "setting" is the name of a set of overtime rules. One or more rules can be applied to a setting.
• A "rule" defines what the pay rate will be after a team member works a certain number of hours, during certain hours / on certain days. One or more pay rates can be applied to a rule.
• Each team member can be assigned to only one setting.
• If a timesheet has already had a rule applied to it, another rule cannot be applied to that time. So, if there are overlapping/conflicting rules, only one rule will be applied.

Example

Rules are bundled in a setting. For example, you may want to create a setting named Team 1. Team 1's rates are:

• All hours after 38 per week are paid at the rate of 1.5
• M - F: First 7.6 hours at x1; All time after at x1.5
• Sat: All time at x1.5
• Sun: All time at x2

Then, you can create another setting for Team 2, etc. (You can assign any name to a setting.)

How to configure advanced overtime settings

1. Go to Company Settings, select Payroll & Overtime then select Overtime.
2. At the bottom of the window, select Use Pay Rate Engine.
3. Select Add Setting, and enter a name.
4. Assign team members to the setting:
   • To assign it to all team members, select DEFAULT SETTING.
   • To assign it to individual groups / team members: Select No team members assigned, make your selection(s), and select OK.
5. Select Add. The Pay Rate Engine window displays.
6. Select the setting name that you just created, then Add Rule.
7. Enter a RULE NAME, and select a TYPE. There are 6 different types you can apply:
   • ​​​Day: Applies a rate multiplier or fixed rate to one or more days after a certain number of hours worked. Select ADD to add a different rate after a certain number of hours.
     Note: If the rate needs to apply to the whole day, set the "Start After" to 0 hours/day.
   • Week: Applies a rate multiplier or fixed rate after a certain number of hours worked in a week.
     Note: This is dependent on your company's Week Start setting.
   • Pay Period: Applies a rate multiplier or fixed rate after a certain number of hours worked in a pay period.
     Note: This is dependent on your company's Payroll settings.
   • Holiday: Applies a rate multiplier or fixed rate to any time worked on one or more specific dates. Enter the rate and select Add Holiday. Enter the Holiday name and select the date of the Holiday.
     • Note: Holiday rules only apply once. If you have recurring holidays, be sure you enter the rule each calendar year.
   • Time of Day: Applies a rate multiplier or fixed rate to any time worked between a specific shift's start and stop time on one or more days. Check Allow shift to run late if the rate should continue to be applied even after the specified end time as long as the team member remains clocked in. Select ADD to add a different rate for a different shift (start and stop times cannot overlap).
     • Note:
       • The Time of Day rule is dependent on enabling Split timesheets at midnight (found in Company Settings, select Time Options then select Time Entry).
       • If a shift was started 10 minutes or more before the Time of Day rule and the Allow shift to run late is checked, then the Time of Day overtime rule will not apply to that shift.
   • Consecutive Days: Applies a rate multiplier or fixed rate after a defined number of days are worked in a row within a workweek. Enter the consecutive day on which the rule should start, and after how many hours on that day it should start. (Example: If you would like overtime to apply after 5 days worked, enter 6.)
     • Note: Consecutive Days can only apply to days within the workweek (you can set your week start day in Company Settings).
8. Enter the appropriate settings for the rule selected.
   • Select whether the rule is a Rate multiplier  (e.g., base pay x 1.5 /hr) or a Fixed rate (e.g., base pay + $2 /hr)
9. Select Save.

Notes:

• If you have QuickBooks Online Payroll and your employee tracks overtime in QuickBooks Time, they need to have the overtime pay type set up in Payroll. Otherwise, their tracked overtime won't be exported accurately.
• The days underlined in blue have been selected.
• If the Pay Rate Engine is used with a payroll/accounting integration that requires Payroll Item Mapping (QuickBooks or Xero), you will have the option to select which Overtime Pay Item will be assigned with which Rule in the Rule Editor. (See How to Map QuickBooks Payroll Items, How to Map Reckon Payroll Items, How to Integrate QuickBooks Time and Xero.)

How to change advanced overtime settings

1. On the main menu, select Pay Rate Engine.
2. Make the change(s):
   • To change the setting name or which team member(s) the setting applies to: At the top right of the setting name, select the & Edit.
   • To change the rule(s) associated with the setting, select the setting name, then select the blue rule name.