Are Overtime Calculations related to the Pay Period?

Are Overtime Calculations related to the Pay Period?

No. The Pay Period has no bearing on Overtime Calculations. Overtime is based on the Starting Day of the Pay Week and the Overtime Calculation method selected as part of Employee Data Setup.

For example we’ll assume the Starting Day of Pay Week is set to Monday and overtime is based on 40 hours per week. Any hours that exceed 40 during a Monday – Sunday week would count as overtime. In this case the Pay Period is from the 16th-31st of the month and the 16th happens to fall on a Friday. The calendar and hours worked look like this:

Calendar

In this example there was no overtime worked during the pay period ending the 15th. The hours worked on the following day make that work week total 42 hours. The result is that 2 hours of overtime will be correctly included on the current pay check. The highlighted pay period would have 88 hours total. 86 would be straight time, and 2 would be overtime.