QuickBooks payroll: overtime calculation for employers and employees
Overtime is a sensitive topic and it is often misunderstood by both employers and their employees. Conflicts can often arise through miscommunication, and as a result, unhappy employees do not work to the best of their abilities. In South Africa, there are several laws governing what constitutes overtime and how much employees should be paid for working overtime. It is highly recommended that business owners make themselves aware of the law in order to avoid making errors when paying employees. The current legal overtime rate in South Africa is 1.5 times higher than standard rate per hour.
Once you have brushed up on legislation pertaining to overtime, you can use QuickBooks payroll software to pay your employees the correct overtime fees. Browse our selection of payroll software now to choose the right program for your business. Alternatively, continue reading for some tips on how to manage your overtime calculations.
Make your overtime calculations easier with QuickBooks payroll
While employers may try to minimise the amount of overtime that employees work, it is often unavoidable. In such situations it is imperative that your payroll system is streamlined and that overtime procedures are transparent.
- Clarify overtime rules. Every company has a different policy regarding overtime. In some businesses, overtime is encouraged when necessary, while in others it is seldom used because it is paid at a higher rate than standard pay. While your company’s policies may seem obvious to you as the business owner, it is pertinent to remember that employees may have worked at companies with different policies.It is therefore recommended that you clarify your business’s overtime policies to ensure that there are no misunderstandings further down the line. If your employees understand that they will not be paid for working additional hours, they will not be tempted to work overtime.
- Maintain accurate records. For companies that do pay overtime, it is imperative that accurate records are maintained to ensure that employees are paid correctly. QuickBooks payroll systems offer business owners a convenient and reliable way to record employees’ overtime. Simply enter your employees’ overtime hours into the system as they occur to keep a digital record of time worked.Then, at the end of the pay cycle it will be quick and easy to confirm the number of hours worked and the amount of overtime that needs to be paid to your employees.
Pay correct overtime with QuickBooks payroll software
QuickBooks payroll software is designed to take the stress out of paying your employees by doing most of the work for you. Once you have entered your staff members’ salary details into the system and stipulated what overtime rate you pay, you will be able to pay your employees their overtime accurately.
Browse QuickBooks payroll solutions now to streamline your overtime payments.