Introduction
In any business, it’s important to ensure that employees who work beyond their scheduled hours are adequately compensated. With the Empress system, this process is simplified, allowing for easy recording of overtime and seamless inclusion in the payroll. In this guide, we’ll show you how to make this happen.
Step 1: Creating an Employee Record
First off, you need to create an Employee Record in the Empress system. Here, you’ll input all necessary information about the employee, such as their regular working hours, salary, and job title.
Step 2: Create a Salary Component for Overtime
Next, it’s time to create a new Salary Component. Name it “Overtime” and categorize it under ‘Earning’. This component will be used to calculate additional pay for the extra hours worked.
Step 3: Include Overtime in Salary Structure
Once the Overtime Salary Component is all set up, it needs to be included in the Salary Structure. Begin by setting the initial amount for Overtime as 0. Don’t worry, this value will be updated based on the actual overtime hours worked by the employee.
Step 4: Enable Salary Slip Based on Timesheet
In the Salary Structure settings, you’ll find an option called “Salary Slip Based on Timesheet”. Enable this and select “Overtime” as the Salary Component. Here, you should also input the rate per hour for overtime work.
Step 5: Assign Salary Structure to Employee
After creating and configuring the Salary Structure, it’s time to assign it to the employee. For this, use the ‘Salary Structure Assignment’ option.
Step 6: Recording Overtime with Timesheets
The Empress system uses Timesheets to capture overtime hours worked by the employee. To record overtime, create a new Timesheet for the employee and enter the overtime hours worked.
Step 7: Creating Payroll Entry
Finally, create a new Payroll Entry for the month in question and enable the “Salary Slip Based on Timesheet” option.
After saving the Payroll Entry, click on the “Get Employees” button, followed by the “Create Salary Slips” button. The system will automatically collect all the timesheets associated with the employee for that month and calculate the Overtime Component accordingly.
This process will ensure that the employee’s Salary Slip includes their overtime pay, thus ensuring they’re correctly compensated for their additional hours worked. The Empress system makes it easy to track, calculate, and include overtime in payroll – a key factor in maintaining fair and accurate compensation.
For further guidance or assistance, please refer to the Empress user manual or contact our customer support team.