California is a little tricky with its overtime rules, but don't fret; we can handle them and even export the correct hours over to QuickBooks.
California Overtime Rules
California pays one and one-half times the non-exempt employee's regular rate for all hours worked over 40 in a work week. Additionally, the following overtime rules apply to non-exempt employees in California:
One and one-half times the employee's regular rate of pay for all hours worked in excess of eight hours up to and including 12 hours in any workday and for the first eight hours worked on the seventh consecutive day of work in a workweek
Double the employee's regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.
The Payroll Snapshot Handles California Overtime
Our Payroll Snapshot™ is a powerful reporting tool that handles many unique payroll situations. Check out this article to learn more. But check out below 👇 to see how to set up the Payroll Snapshot™ for California.
Go to Snapshot Settings>Payroll Settings>Default Pay Types.
Fill in the Regular, OT1 and OT2 fields, and save.
On the same screen, go to the Work Week Settings tab. This is where you will define your work week start day and time. Apply the Expanded Overtime Settings and save.
Now, you need to set your pay period. Go to Payroll Functions, Change Payroll Period, and select your pay period from the dropdown menu. Then, change your starting date, calculate the payroll period, and accept the changes. The Snapshot is created from the dates you set here.
Now go to Payroll Functions, Payroll Snapshot, and click on New Snapshot.
It will process and cue up at the top of the list. It will tell you that the Snapshot has been created when it's ready. Go ahead and click on it.
Then, go to the Exports tab. In the Exports dropdown are several export formats. The first 3 are our unique exports, and the rest are for payroll companies. If your company isn't using QB or another payroll service, then use one of ours. For summary payroll hours, use either Summary or Summary Totals. Summary Totals is more versatile and necessary when doing many of the other things mentioned in the article about the Snapshot.
The Detailed PDF below shows how we break down California hours. On 3/27 Dennis had a total of 14 hours. 8 hours were counted as regular hourly, 4 hours as OT1 and 2 hours as OT2. All of our Snapshot reports will break it down like this, but the Detail report is a good illustration of the California settings in action.
Here is the PS Summary .csv that is great for your payroll company because it's just a summary of the total hours for the pay period (hence the report name Summary 😉)
That's a look at California OT powered by Chronotek's Payroll Snapshot™.
For help on other topics, check out our Help Center.
Take a peek at our new platform, Chronotek Pro.
