How to correctly pay Overtime if it was missed in your Processed Payroll

If you've already processed payroll but forgot to enable overtime (OT) and want to ensure your employees are paid accurately, don't worry—follow these steps to correct the issue.

Step 1: Enable Overtime in Company Settings 

1. From the 7shifts web app navigate to Company Settings > Labor & Compliance.
2. Enable the Overtime and configure settings according to your company's labor policies. 
   • Reference your local labor laws or company-specific rules for overtime eligibility. 
   • For detailed guidance, check the article on Overtime settings in 7shifts here. 

Step 2: Verify Overtime Data 

1. Navigate to Reports > Worked Hours & Wages report.
2. Select the specific pay period where overtime was missed. 
3. Now that overtime is enabled, this report will display hours worked per employee, including overtime.  
   • Learn more about the Worked Hours & Wages Report here. 

Step 3: Calculate the Overtime Owed 

Use the following steps to calculate OT payment: 

1. Open the Payroll History Report to find the Regular Labor Hours paid in the original payroll run. 
   • Learn more about the Payroll History Report here.
2. Compare this data to the Worked Hours & Wages Report to determine the actual overtime hours worked.
3. Download OT Payment Calculator
   • The CSV file is attached at the bottom of this article. Click to download it. 
4. Using your 7shifts reports, input the data into the calculator to determine the additional amount owed to each employee. 

Step 4: Run an Off-Cycle Payroll 

1. Follow the steps in this guide to Run an Off-Cycle Payroll.
2. Process the calculated overtime difference for each affected employee.