Find answers in our knowledge base

How to Configure and Change Advanced Overtime Settings

« Go Back

Article Detail

Rich Text Description


  • 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 an employee works a certain number of hours, during certain hours, and/or on certain days. One or more pay rates can be applied to a rule.
  • Each employee 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.


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 > Payroll & Overtime > Overtime.
  2. At the bottom of the window, click Use Pay Rate Engine.
  3. Click Add Setting, and enter a name.
  4. Assign employees to the setting:
  • To assign it to all employees, click DEFAULT SETTING.
  • To assign it to individual groups and/or employees: Click No employees assigned, make your selection(s), and click OK.
  1. Click Add. The Pay Rate Engine window displays.
  2. Click the setting name that you just created, then Add Rule.
  3. Enter a 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. Click 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 click Add Holiday. Enter the Holiday name and choose the date of the Holiday.
  • 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 employee remains clocked in. Click 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 > Time Options > Time Entry).
    • Note: 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 certain number of days worked in a row. Enter on which number of consecutive days worked it should start and how many hours worked that day it should start after.
  1. Enter the appropriate settings for the rule selected.
  • Choose 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)
  1. Click Save.


  • When adding a Day or Time of Day rule, a Week rule must be added first. This ensures employees still receive overtime for all time worked after a particular threshold (e.g., any time after 40 hours in a week).
  • 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, Reckon, or Xero), you will have the option to choose 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 ItemsHow To Integrate TSheets and Xero)

How to Change Advanced Overtime Settings

  1. On the main menu, click Pay Rate Engine.
  2. Make the change(s):
  • To change the setting name or which employee(s) the setting applies to: At the top right of the setting name, click the three dots > Edit.
  • To change the rule(s) associated with the setting, click the setting name, then click the blue rule name.

Need help? We’re here for you.
Mon-Fri, 5am – 9pm MST
Sat – Sun, 8am – 5pm MST
Chat with us!
us: +1 (888) 836-2720
au: +1 (800) 989-143
uk: +44 (808) 164-0610

Was this document helpful?


Sorry this document wasn’t helpful. How can we improve it?

Characters Remaining 255