Add overtime rates for staff to select when entering timesheets. Use the overtime rates to report on the number of extra hours completed by staff, and calculate the charge-out value and costs for the transaction differently to the standard rates.
*This feature is available with the Synergy Business or Enterprise products.*
|Setup required before use||Who can use it?||Where is it?|
|Settings > Financial > Overtime rates|
What are overtime rates?
Overtime rates are used to track the number of extra hours your teamwork, on-top of their agreed 'standard' salary hours. The overtime hours are tracked by the staff timesheets entered. Each staff member can only use the overtime rates that have been set up as approved for use on their staff record.
Each overtime rate allows you to define a separate 'cost' and 'charge' factor. The factor is the multiplier used for overtime transactions to calculate the 'cost' and 'charge' values, and many overtime rates can be created with the same cost or charge factor applied. For example - the 'director' standard rate has a charge-out value of $200 per hour, and a standard cost of $160. The 'director' rate is used with an overtime rate of 'time and half' applied in staff timesheets. The overtime rate 'time and a half' is set up so that both the charge and cost factors are 1.5. Based on the overtime rate factors, the entered transactions will show with a charge-out value of $300 per hour, and $240 cost.
Create multiple overtime rates to track each type of overtime separately in transaction reports e.g. standard time, overtime (non-paid), double time, time and half, public holidays etc. After the overtime rates have been added only the 'description' can be changed. If other fields need to be changed try either deleting the item or making the rate inactive, and then creating a new record.
Why use overtime rates?
Reflect the true cost of your staff working extra hours by creating overtime rates and defining the cost and charge-out factors for the overtime work. Use the same factor on multiple overtime rates to report on the time recorded against each overtime type.
Create an extra overtime rate required for timesheet entry by your staff. Different overtime rates can be created to track the different levels of overtime pay like double time, time and half, or no additional pay. Control the internal cost for the overtime rate, and the on-charge rate to your client using the factors. The factor will mark up the rate from the standard value.
Add an overtime rate by:
- Go to: Settings > Financial > Overtime rates
- Click the 'Add' button in the top right corner.
- Type a 'name' for the overtime rate. e.g. Double time, or time and half.
- Type a 'charge factor' value such as 2 for double time or 1.5 for time and a half.
- Type a 'cost factor' value. e.g. Enter 1 if the cost is the same as normal, or 2 if the salary paid for the overtime is double the normal rate.
Tip: The default overtime rate of 'standard' cannot be deleted, changed, or made inactive.
Change an overtime rate to be inactive when you want to stop it being used in the future. If an overtime rate has been used on a staff record or in staff timesheets, then it cannot be deleted and must be made inactive to stop future use.
- Go to: Settings > Financial > Overtime rates, and use one of the following methods.
- Single row - Click the row action button, and select 'edit'. Uncheck the 'active' box, and then save and close.
- Multi-row - In the list check the box(es) on the left of the name column, and then click the multi rows action button. Choose 'Set as not active' option.
- The list refreshes and only the active items remain in the list.
The description field for the overtime rate name requires a unique value. Therefore if you need to re-add the overtime rate again with the same name it is suggested to re-name the older rate to something else, so the name can be reused when you enter the rate again with different charge / cost factors.
- Overtime rates do not allow the charge or cost factors to be amended. If these fields need to be changed your will need to either make the record inactive, and then create a new overtime rate record.
- Use the list filter 'all' to find both active and inactive cost centres.
- A strike-out style is applied to rows that are inactive.
When a large number of items exist, use the search or filter options to limit the number of rows shown in the list.
Search by clicking the search button and typing the keyword into the search box. To return to seeing all items in the list click the clear button in the search bar.
Tip: Learn more about searching with the list search or the global search.
Filter the list by selecting the search button. See the available filters by clicking the word 'active'. Select a filter from the drop-down list and click the search button to apply the filter. The filter options are:
- Active - the default list filter that shows the items that can be used (seen in drop-down lists).
- Inactive - see the items that can no longer be used, and are only shown when still linked to existing records.
- All - see both active and inactive items in the list.
Tip: Return to the default view by choosing the clear button in the search bar.
Track how many extra hours your work each day using overtime rates. Overtime can be entered in your timesheets for extra hours worked on project tasks or internal project tasks. The overtime rates set up in your system can either increase the charge-out value of the work to your client, or increase the cost of you completing the work.
Samples of overtime rates are:
- Double time - used for extra hours on public holidays or extra hours on Sundays. Mostly setup to double the cost (2.0) and double the charge-out value (2.0).
- Time and a half - used for common overtime hours. Mostly setup for both cost and charge-out value to be x 1.5 the standard value.
- Overtime with no extra charge - extra hours were worked, but no extra pay will be given for this as the staff member is on salary and not paid overtime. This type of overtime rate would be used for reporting purposes, and have the charge out set to 1 to still invoice the client for the work. The cost, in this case, would be set to 0, as the staff member did this work as unpaid overtime (part of their salaried position project commitments).
If overtime rates are NOT enabled in Synergy, then you will enter your timesheet hours to look like the table below.
This example shows that the staff member worked 2 hours overtime, to attend a client dinner to discuss a project proposal. The timesheet entry is for 10 hours - however, the staff member should work only 8 hours. The extra 2 hours need to be allocated as overtime.
|BN-11-0007 - Casino Royale Shopping Complex||Building Approval||Senior Engineer||Design||2.50||Council requirements|
|SY-11-0099 - Australia Golf Club||Fee Proposal||Associate Director||Client Liaison||2.00||Dinner with client|
|SY-12-001 - Castle Hill Train Station||Architectural Design Development||Associate Director||Design||2.50||Revised plans V3|
|Internal||Professional Development||Engineer||Workshop||3.00||Training course|
If overtime is enabled in the system, then you can select which overtime rate to apply to the entry from the drop down list.
|BN-11-0007 - Casino Royale Shopping Complex||Building Approval||Senior Engineer||Design||2.50||Standard||Council requirements|
|SY-11-0099 - Australia Golf Club||Fee Proposal||Associate Director||Client Liaison||2.00||Overtime (no charge)||Dinner with client|
|SY-12-001 - Castle Hill Train Station||Architectural Design Development||Associate Director||Design||2.50||Standard||Revised plans V3|
|Internal||Professional Development||Engineer||Workshop||3.00||Standard||Training course|
When you work on the same timesheet task for both 'standard' hours and 'overtime' hours, then you will need to enter this as two timesheet entry rows.
The time and expenses tab for the project shows each overtime entry with a checkmark and which overtime rate was selected. This makes it easy to see in the project, or your transaction reports the details of the overtime rates.
- Name: The name for the overtime rate that will appear for staff in the drop-down list when entering timesheets, and when viewing transactions in the project or reports.
- Charge factor: The multiplier used to calculate the chargeable value of the overtime transaction. Type a whole number like 2 to double the value, or use up to 2 decimal places in the factor. A factor of zero is also supported. i.e. a charge factor of 2 will multiply the default chargeable rate $200 per hour by 2, which equals an overtime charge of $400 per hour. Or a factor of 1.5 will add 50% to the charge rate, to equal $300 (for the default value of $200).
- Cost factor: The multiplier used to calculate the cost value for the overtime transaction. Type the number like 2 to double the cost, or use up to 2 decimal places in the factor. A factor of zero is also supported. i.e. a charge factor of 2 will multiply the rate cost $150 per hour by 2, which equals an overtime cost of $300 per hour. Or a factor of 1.5 will add 50% to the charge rate, to equal $225 (for the default value of $150).
- Active: When this field is checked the overtime rate is active and can be used for future timesheet entry. Overtime rates that are inactive (unchecked) cannot be used on future timesheets entries.
- Locked The default overtime rate of 'standard' is locked and cannot be changed. All other overtime rates are 'custom' and can have the description changed if required.
Tip: The cost and charge factors on a saved overtime rate cannot be changed, as this would impact a large number of existing transactions. Try making the existing record inactive, and adding a new record with the different cost / charge value. The same name / description can be used on the new record.