Weekly Overtime “True-Ups” on Daily Pay Cycle Checks

True Ups

If you are paying workers daily, it is impossible to calculate their entire weeks’ worth of Overtime Premium in order to pay it out correctly each day until they have completed the work week.

This means that you will need to “True Up” their pay at the end of the week. Truing up means paying the correct calculation of Overtime Premium once an employee has completed an entire week of work. This amount will be paid out on their last worked day of the week.

Follow these steps to correctly calculate and pay Overtime/ Overtime Premium to workers that are paid each day.

1. Open the employee’s account, open the Deductions tab, and set their Pay Cycle to Daily. Save this change.

   In the following example, the hours for the week are currently 35.5.

2. On the last check for the week, enter the Starting and Ending Dates for the entire week.

3. Enter the Pay Period Starting and Ending dates. Both of these dates will still be the daily date for the current wages you are paying, not the entire week.

4. The software will use the Starting and Ending Dates to total all hours and add Overtime Premium lines for the amount of additional overtime compensation due at ½ the average hourly rate to make up the overtime premium due.

   In the following example, the last day brought the total hours to 41.5. Since overtime must currently be paid after 40 hours have been worked in a workweek, 1.5 hours are being paid at ½ the regular rate of pay ($7.50). This amount has been added to the employees check to compensate for the overtime.