SmoothPay can automatically convert hours above a defined threshold into Overtime using the Timesheet.
This article explains how to enable the feature, how to apply company-wide defaults, how to override settings per employee, and how calculations work in practice.
Important Rule
Automatic overtime and automatic TOIL/RDO cannot operate together.
Only one automatic method can be active for any employee.
Initial Setup (Company-wide Defaults)
To enable automatic overtime:
Go to Settings > Options
Locate Automatic overtime options
Configure the following:
Basis
Select how the threshold should be measured:
Daily
Weekly
Pay period total
Ordinary time cutoff
Enter the number of hours allowed before excess time becomes overtime.
Balance goes to
Select the overtime paycode that excess hours should be transferred to.
This paycode must be defined in your Work Codes.
Once Basis, Ordinary time cutoff and Balance goes to have been configured Save.
Applying Overtime Settings to All Staff
After configuring defaults:
In Settings > Options, locate the spanner icon next to the Basis setting
Click Apply Auto-Overtime settings to all staff
This sets the default for all existing employees.
New employees will inherit these settings automatically.
Per-Employee Settings
Where employees have different overtime rules:
Go to Staff
Select the Contract tab
Select the Overtime/TOIL tab
Adjust Basis or Ordinary time cutoff
Notes:
You cannot individualise the overtime paycode. The paycode always comes from the company setting under Settings > Options.
Terminology may appear as Overtime/TOIL or Overtime/RDO depending on country settings. The options function the same.
Automatic Overtime Example
Daily threshold: 8 hours
Timesheet entries:
Tuesday: 9 hours
Thursday: 9.5 hours
When you click Save:
SmoothPay will:
Record 8 hours each day as Ordinary
Record 1 hour (Tue) and 1.5 hours (Thu) as Overtime
Create separate transactions for Ordinary and Overtime in the payrun
This ensures correct allocation with no manual calculation required.