To set up a new benefit based on extra time worked, follow these steps:
1. Access Custom Benefits
Navigate to Settings > Payroll.
Select Create Custom Benefits.
Benefit Name: Enter a clear name (e.g., "After-Hours Incentive" or "Daily OT Bonus").
2. Define the Calculation Logic
Under Calculation Logics, choose Daily Extra Hour Pay.
The system uses the following formula:
Daily Extra Hours = Actual Working Hours - Scheduled Working Hours
3. Configure Payment Parameters
To ensure the calculation aligns with your company policy, adjust these three key settings:
Minimum Cap Minutes: * The threshold required to trigger payment.
Example: If set to 15 minutes, an employee who works only 10 extra minutes will not receive the benefit.
Grace Minutes: * A "buffer" time that is subtracted from the total extra hours.
Example: If an employee works 45 extra minutes and Grace Minutes is set to 5, they are paid for 40 minutes.
Rounding to the Nearest Minutes: * How the system "cleans up" the final number.
Example: Rounding to the nearest 10 minutes means 34 minutes becomes 30, and 36 minutes becomes 40.
Example Scenario Walkthrough
Category | Time Data |
Scheduled Shift | 9:00 AM – 5:00 PM (8 Hours) |
Actual Attendance | 8:45 AM – 5:30 PM (8:45 Hours) |
Total Extra Time | 45 Minutes |
Applying the Logic:
If your settings are Minimum Cap: 10m, Grace: 5m, and Rounding: 15m:
Check Cap: 45m > 10m (Eligible ✅).
Apply Grace: 45m - 5m = 40 minutes.
Apply Rounding: 40m rounded to the nearest 15m = 45 minutes payable.
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Pro-Tip: Remember that Daily Extra Hours look at the entire day. If an employee comes in 15 minutes early and leaves 30 minutes late, the system counts that as 45 minutes of extra time.
✅ Benefit Created: This custom benefit will now appear as a line item in your payroll generation.