How to Manually encode Overtimes and Premiums in a Payroll Run?

There are instances that Overtime/Premiums are not captured automatically from attendance to payroll. Manually encoding the Overtime or Premiums may not be avoided due to some reasons. We listed some of the common reasons below: 

1. Excess overtime of the filed OT that was not captured due to the logs beyond the thresholds

2. Changes in the policies that may have affected the premiums

3. Changes in the schedule that were not captured during the payroll processing and was not adjusted on the next cut-off via Import Adjustment from the previous Payroll Run

Sample scenario:

Shift: 8:00 AM to 5:00 PM (Normal Shift)

Threshold: 8 hours post-shift

The employee had overtime from 5:00 PM to 3:00 AM. Since 3:00 AM is already beyond the threshold, the employee can only file his overtime from 5:00 PM to 1:00 AM. So, what do we do with the excess overtime? 

This may be resolved using either of the following steps: 

Note: Compute the 2 hours of overtime based on the Basic Salary of the employee. Let's say he has a Basic Salary of 15,000. The Work Days per Year is 261. Work Hours per Day is 8. We need to get his Hourly Rate. Here's the computation: 

(Basic Salary x 12 months) / Factor Rate (Work Days per Year) = Daily Rate

(15,000 x 12) / 261 = 689.66

Daily Rate / Work Hours per Day = Hourly Rate

689.66 / 8 = 86.21 

Hourly Rate x excess overtime

86.21 x 2 = 172.42 Note: OT is taxable

Then, check the rate in the OT Table. Sample: 

Hourly Rate x ND-OT rate: 

172.42 x1.375 = 237.08

After getting the value of the overtime, you may upload it: 

via One-Time Adjustment: 

1. Upon creating the Payroll Run, click Adjustment for the employee you need to add Overtime/Premium

2. Click Add new record

3. Enter the details of the Overtime/Premiums. Please note that overtime is taxable. 

To know more about this, please check this out:

How to Set Up a One-Time Adjustment for a Specific Employee 
For Bulk Upload for several employees, you may use this as a reference: How to Set Up a One-Time Adjustment using Mass Upload (Excel File)

4. Then, proceed in completing the Payroll Run

via Attendance Setup

Note: You only need to input the excess hours worked, to counter-check the result, you may refer to our sample computation

1. Once done setting up the Payroll Run, click Next to go to the Attendance setup

2. Enter the Overtime/Premiums manually

3. Click Save & Process

Note: You cannot import adjustments from the previous payroll on your next Payroll Run as the adjustments on the current payroll made via the Attendance Setup will revert to the original and will cause incorrect computation for your next payroll. 

Feel free to let us know if you have any questions! 

Related article: 

Attendance Report (Definition of Abbreviations)