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When should I use overtime hours in Zenefits Payroll?

Use the default Overtime Hours and Double Overtime Hours types for paying overtime rates, as needed. Zenefits Payroll automatically applies overtime for hourly employees who use Time & Attendance in compliance with state guidelines.

Default Overtime Earnings in Zenefits Payroll

Zenefits Payroll has two default types of Overtime:

  • Overtime Hours are single overtime, and are calculated as 1 .5x the employee's Regular Earnings.
  • Double Overtime Hours are calculated as 2x the employee's Regular Earnings.

Taxes are withheld for Overtime in the same way as Regular Earnings.

The default Overtime and Double Overtime types cannot be edited because Zenefits Payroll will automatically apply these default types to employees who use Time & Attendance in compliance with the overtime laws of the state where the employee works.

Custom Overtime Earnings

Custom Overtime Earnings types can be added and use for employees who do not use Time & Attendance

  • A custom Overtime Hours pay type can be set to a fixed rate (same as default single Overtime Hours, 1 .5x Regular Earnings) or a custom multiple of the employee's Regular Earnings.
  • A custom Double Overtime Hours pay type can be set to a fixed rate (same as default Double Overtime Hours, 2x Regular Earnings) or a custom multiple of the employee's Regular Earnings.
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