How to Enable Overtime Payments for Salaried Staff – S4Labour

S4labour allows for automatic calculation of overtime payments for salaried staff, provided certain conditions are met. This guide outlines the requirements and steps to enable this feature.

We will need to adjust your organisation's settings in order to enable Overtime functionality. Please reach out to our Support desk or your Customer Success Manager to action this.

✅ Requirements for Overtime Calculation

To ensure overtime is calculated correctly:

Pay Type: Staff must be set to a weekly pay type.
Pay Rate: The pay rate should reflect the weekly amount, not the annual salary.
Overtime Calculation:
- Overtime is paid for every hour worked beyond contracted weekly hours.
- The hourly rate is calculated as:
  Weekly Pay ÷ Contracted Weekly Hours
- Each hour over the contracted amount is paid at this calculated rate.

🛠️ Steps to Enable Overtime

Follow these steps to activate overtime payments for a salaried employee:

🔍 Go to the Employment Tab
Open the employee’s profile and navigate to the Employment tab.
📅 Schedule a New Pay Setup
Click "Schedule a new rate of pay or position" to access the required settings.
⚙️ Update Pay Frequency & Enable Overtime
- Change the Pay Frequency to Weekly.
  ⚠️ Watch Out!
  Changing the pay frequency to weekly will reset contracted terms to system defaults.
  👉 Be sure to review and amend contracted hours and other employment terms as needed before saving.
- Tick the Overtime toggle (this appears once weekly pay is selected).
- Update the employee’s pay rate to reflect their weekly earnings, not their annual salary, to avoid overpayments.
  - 🧮 How to Calculate Weekly Pay Value
    To convert an annual salary to a weekly pay rate:
    Annual Salary ÷ 365 × 7 = Weekly Pay
  - This ensures the weekly rate reflects a consistent value across the year.
🗓️ Set a From Date & Save
Choose the date from which this change should take effect and click Save.

📈 What Happens Next

Once enabled:

💼 The system will automatically increase the employee’s cost in the rota when overtime is worked.

📤 This additional cost is included in payroll exports, ensuring accurate payment.

🌴 Holiday Accrual Reminder
Salaried staff continue to accrue a fixed amount of holiday each week, regardless of hours worked.
Overtime hours do not contribute to holiday accrual.