How to Allocate Retro OT by Job

If you use job costing in your business and must allocate overtime hours, Fingercheck helps you do that.

Jeffrey Mo avatar
Written by Jeffrey Mo
Updated over a week ago

This article describes how to allocate overtime hours to the appropriate job, which is also known as job costing. Overtime allocation in job costing is an integral part of many businesses and how they keep track of the jobs and their expenses. In the example procedures below, instead of putting all overtime in for Friday, overtime is divided throughout the week evenly. It's important to follow all the steps outlined below to ensure that the setup works correctly.

Step 1: import dates from the time card

  1. Log in to your Fingercheck account as an Administrator.

  2. Click the SETUP tab > Company > Default Settings.

  3. Scroll down the page to the checkboxes, and make sure that Import Dates From Time Card is selected.

  4. Click Save.

Step 2: set the over hours (OH) earnings code

In this procedure, you are creating an over hours (OH) earnings code (which is an addition to your RG - Regular Hours and OT - Overtime earnings codes).

  1. Click the SETUP tab > Payroll > Earnings.

  2. Click Add to open a panel of pre-defined earnings types.

  3. Scroll down the page, and click the Add button next to the Overtime type.

  4. Click OK in the confirmation windows that appear.

  5. Click the X in the top-right corner to close the panel.

  6. From the list of earnings types, click the Edit icon (pencil) to edit the Overtime type.

  7. Update the following fields as described:

    • Code and Description: A name that will help you differentiate it from other earnings codes.

    • Rate Factor: 1

    • Maximum Hours: 40.00

    • Transfer Excess Amount To: OT - Overtime

    • Process Sequence: 2

  8. Click Save.

For more information, see How to Set up Earning Codes.

Step 3: set the over hours (OH) accumulator

  1. Click the SETUP tab > Payroll > Accumulators.

  2. In the Code field, enter an abbreviated name for the policy (for example, OH). In combination with the Description field, this makes up the full name of the policy as displayed in other areas of Fingercheck.

  3. In the Description field, enter a short descriptive name for the accumulator (for example, Over Hours).

  4. From the Scope drop-down list, select CurrentCheck.

  5. Add the following accumulator rules:

    • One for RG - Regular

    • One for OH - Over Shift Hours

      From the Accumulator Type field, select EarningHours for each rule.

      When creating each rule:

      1. From the Accumulator Type field, select EarningHours.

      2. From the Code field, select the RG or OH code you created.

      3. From the Accumulator Action drop-down list, select Add.

      4. Click Apply.

  6. Click Save to save the accumulator.

For more information, see How to Create Accumulators.

Step 4: set the OH earning code and proper sequence

After you create the over hours accumulator, you must add it to the over hours earnings code you created. You must also set the proper sequence for the Regular, Overtime, and Over Hours earnings codes.

  1. Click the SETUP tab > Payroll > Earnings.

  2. Update the OH earnings code you created in How to set the over hours (OH) earnings code above.

    1. From the Maximum Accumulator drop-down list, select the OH accumulator you created in the procedure above.

    2. In the Process Sequence field, enter 2.

    3. Click Save.

  3. Update the Regular earnings code.

    1. In the Process Sequence field, enter 1.

    2. Click Save.

  4. Update the Overtime (OT) earnings code.

    1. In the Process Sequence field, enter 3.

    2. Click Save.

Step 5: set up the overtime policy

  1. Click the SETUP tab > Policies > Overtime Policies.

  2. Create an overtime policy with the following rules:

    • Rule #1

      • Over Time Type: Daily

      • Hours Above: 8.00

      • Hours To: 24.00

      • Division Earning: <The OH code you created above>

    • Rule #2

      • Over Time Type: Weekly

      • Hours Above: 40.00

      • Hours To: 168.00

      • Division Earning: <The OH code you created above>

      For more information, see How to Set Up an Overtime Policy.

  3. Add the overtime policy to the master profile.

    1. Click the Setup tab > System > Master Profiles.

    2. Select the profile to which you want to apply your overtime policy.

    3. From the Overtime Policy drop-down list, select the policy.
      Make sure this profile applies to the employees you want to set overtime for.

    4. Click Save.

    For more information, see How to Set up a Master Profile.

These allocations will not be visible until the payroll is run. When you run payroll, the allocations are visible in Step 5 (the Preview Payroll step).

It's crucial to make sure that you've completed all the steps mentioned above. Missing even a single step or field could lead to issues with the setup's functionality. We recommend thoroughly reviewing the setup process to ensure that you've followed each step carefully.

Thank you for using Fingercheck. If you have any questions on this article's topic, you can reach out to our team at 1-800-610-9501, or use the chat option below.

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