Overtime and Allowance rules that you've set up in Droppah can be sent through to PayHero as separate components on your employees' timesheets, for accurate and automatic payroll processing.
The setup will look a little different for an Overtime rule than for an Allowance, so check the relevant section below depending on what you're looking to create:
Sending Overtime to PayHero
Creating an Overtime Rule
Head to Manage > Work Groups and click into the Work Group you'd like to manage Overtime for. Click + Rule to add a new rule, or click on an existing Overtime rule to edit it. Full details on what options are available for creating an Overtime or Allowance rule can be seen in our Overtime and Allowances article, but for an Overtime rule that you'll be sending through to PayHero, the two main fields to pay attention to are:
- Then - This should be set to 'Modify hourly Pay Rate' for an Overtime rule
- PayHero Work - The Work option that the Overtime will be recorded against in PayHero. If left blank, the PayHero Work for the Work Group will be used.
PayHero Work & Pay Items
When setting up Work options in PayHero, you'll need to ensure you set an appropriate pay item - for this example, the 'Overtime' Work we've selected in Droppah is set to use the 'Time and a Half' pay item so that it displays accordingly on employee payslips. The employee will also be paid 1.5x their Normal Rate, based on the settings in the Overtime rule shown above.
Further information on setting up Work in PayHero can be seen in our Work article.
Custom pay items can also be created for Overtime if required. These should be set to pay in Units of Hours - the pay item should be either Regular Earnings or Other Earnings, with other settings applied to suit.
See the PayHero article on 'Earnings' type pay items for details on how to create these.
Unlike regular time entries, the pay rates for overtime will be calculated based on the rules you've set up in Droppah and sent through to PayHero, so the Rate Type and Rate Multiplier settings in PayHero won't affect the way employees are paid for overtime.
Approving Time for PayHero
After approving time, the time entries generated will automatically be split out according to the Overtime rules that were applied. See more on approving time here: Approving Time for Payroll: PayHero
Sending Allowances to PayHero
Creating an Allowance
Head to Manage > Work Groups and click into the Work Group you'd like to manage Allowances for. Click + Rule to add a new rule, or click on an existing Allowance rule to edit it. Full details on what options are available for creating an Overtime or Allowance rule can be seen in our Overtime and Allowances article, but for an Allowance rule that you'll be sending through to PayHero, the two main fields to pay attention to are:
- Then - This should be set to 'Add allowance' for an Allowance rule
- PayHero Work - The Work option that the Allowance will use in PayHero. This must be set to a Work option set up appropriately for handling allowances in order for these to flow through correctly - see below for more information.
PayHero Work & Pay Items
When setting up Work options for allowances in PayHero, you'll need to ensure you set an appropriate pay item - for this example, the 'Short Shift Allowance' Work is using a custom pay item that's set up to pay based on the Allowance amount specified in Droppah.
Further information on setting up Work in PayHero can be seen in our Work article.
Pay items for Allowances should be created as Other Earnings, with $ Units set to a $1 Rate, as seen here:
See the PayHero article on 'Earnings' type pay items for details on how to create them like this for use with Allowances in Droppah.
Approving Time for PayHero
After approving time, the time entries generated will automatically be split out according to the Allowance rules that were applied. See more on approving time here: Approving Time for Payroll: PayHero Allowance details can be viewed in the table at the bottom of the employee's timesheet:
Frequently Asked Questions
Overtime rules will take precedence over any automated rate processing that normally occurs in PayHero, including public holiday processing.
We recommend ensuring that any Overtime rules you set up pay at at least 1.5x the normal hourly rate to ensure that your employees aren't underpaid public holidays.
Alternatively, you can set up a specific public holiday Overtime rule designed to pay 1.5x the employee's normal rate, and ensure that it's a higher priority than your normal Overtime rule by placing it higher in the list, as shown here:
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