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Level 2

QuickBooks Time - Working past midnight OT issue

I often have employee shifts that run past midnight. Currently, Quickbooks Time starts a new entry at midnight, which messes up overtime.

For example, I have an employee work from 4:00pm to 1:00am and should get overtime for this because it's 9 hours. However, Quickbooks Time enters that as 4:00pm - 12:00am (8 hours), and then 12:00am - 1:00am (1 hour), and doesn't flag it as any overtime owed.


Is there a way to make Quickbooks Time track overtime by how long they are clocked in, rather than the number of hours worked per day?

4 Comments 4

QuickBooks Time - Working past midnight OT issue

Hello, dougberry.


I'd like to show you a guide on how to ensure your employee's overtime is flagged correctly in QuickBooks Time. 


Yes, there is but we would want to tinker around the overtime settings to ensure the employee's overtime settings are flagged and tracked correctly. 


 So, one way to do this is to use the advanced overtime settings instead of the basic configuration. 


Here's how to enable and create a new overtime setup:


  1. Click the Company Settings tab.
  2. Go to Payroll & Overtime.
  3. Click the Overtime tab.
  4. At the bottom, click the Use Pay Rate Engine link (see screenshot).
  5. Proceed with the Mange Pay Rates button.
  6. Click the Add setting button. 
  7. On the pop-up box, add a name (like John Doe's OT settings or similar). 
  8. Click Add.




QuickBooks Time needs a weekly overtime setup first before adding a different type. Simply click the Add Rule button, then enter the weekly overtime settings.


Next, let's create a new rule for the schedule overtime settings: 


  1. Create a new rule and enter a name.
  2. Set the type to Time of Day
  3. Set the days of the week. 
  4. For the hours between, set it to after shift and before shift (in your employee's case, 12:00 AM  to 4:00 PM, but the end time can be changed to the maximum hours allowed). 
  5. Set a multiplier and check the Allow shift to run late if needed. 
  6. Once done, click Save


We can assign this rule to a specific employee by clicking on the All team members link, then selecting that particular employee. If we set it as such, only this person will use the overtime rule settings. 


We may also need to create a separate universal rule for the rest of the employees' shift and overtime settings. 


As we track the time, a new entry with the regular time (for the overtime) will normally appear on the sheet.


This is flagged as overtime as we approve the employee's time. Check this screenshot out:




Ready to review the employees' total time and other payroll-related data? This article can help us familiarize on what report we can run: QuickBooks Time reports.


I'm up and ready to help you out again if you have more concerns about your time entries. I'll also cover other things like time approvals, importing data and more. Always here to help! 

Level 2

QuickBooks Time - Working past midnight OT issue

Hello, thanks for your reply.

I see that this does solve the problem in my specific example, but that was just to serve as a base.

Overall, we have shifts that change wildly depending on the project. Sometimes people start work at 9:00am and only work for 6 hours, sometimes they work for 16 hours, it all depends.

It looks like in your solution, you have it set to flag any time worked on the days selected between 12:00am and 4:00pm as overtime, but that wouldn't work if my employee started working at 1:00pm one day, for example.


Also, sometimes, we'll have a shift that runs from 9:00pm to 2:00am, which does not then get any overtime because it's only 5 hours.

Overall, overtime is simply tracked by nothing more than hours worked in a row, regardless of the day of the week, or the time of day.

Level 2

QuickBooks Time - Working past midnight OT issue

Just bumping to make sure you saw my other reply. 

QuickBooks Team

QuickBooks Time - Working past midnight OT issue

I appreciate you getting back to us, dougberry.


I'll continue to help to ensure your employees' overtime entries after midnight will be included to the previous day.


To do this, you'll want to uncheck the Split timesheets at midnight option in your settings so the system will not treat the overtime as a regular hour for the next day.


  1. Go to Company Settings.
  2. Choose Time Options.
  3. Uncheck Split timesheets at midnight.
  4. Click Save.


I'm also including this article to guide you through making changes to your settings: About QuickBooks Time Company Settings. It has more time options settings.


I'm just a comment away if you need further assistance. Take care!

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