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How To Calculate Employees Regular Hours, Night Differential & Overtime

Accurate payroll computation for employees hours work is essential it should be done by working system for time tracking to record the time-in and time-out for daily time records. Computation of timesheet is tricky, not only recorded time in biometric device as source of data but we should include the approval filing of notices like locator slip, overtime, leave, broken time, invalid logs, and temporary shift.

Component lookup in timesheet processing.

  • Employee Shift Schedule -> work schedule setup that defines start time, end time, regular hours, day tagging (regular day or rest day),
  • Holiday table -> list of dates that are regular holiday, special holiday etc.
  • Filing of notices -> overtime, leave, locator slip, broken time etc.
  • Early time out -> dates of suspension of work due to bad weather or other company activities, but employees must be counted as complete regular hours for those employees are not late.

Logical process of HR Payroll System for timesheet computation is to distribute the workhours for regular hours, overtime hours, night differential, overtime hours + night differential and define the work date if regular day, rest day, special holiday, special holiday & rest day, regular holiday, regular holiday & rest day, double holiday, double holiday & rest day.


Workhour Distribution (Regular day, Rest day, Holidays)

  • Regular Hours = Regular Hour - (late + undertime + Night Differential).
  • Regular Overtime = Excess time for regular hours work and approved by head department.
  • Overtime + Night Differential = overtime work from 10:00pm to 6:00am.
  • Night Differential = Regular time from 10:00pm to 6:00am.

After timesheet processing, the timekeeper will review the generated report of employee workhour distribution to make it sure that output result is correct. Those employee with changes of notices should be reprocessed until to achieve the correct results.


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Source of payroll process is coming from the timekeeping processing called as work hour distribution that confirmed by employee and approved by head department prior to payroll processing.

How To Calculate Employees Regular Hours, Night Differential & Overtime

Computation of timesheet is tricky, not only recorded time in biometric device as source of data but we should include the approval filing of notices like locator slip, overtime, leave, broken time, invalid logs, and temporary shift.

How to Generate Timesheet from Biometric Time Logs

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Tips how to start?

  • Create an account.
  • Verify the account via email sent by the system after registration is completed.
  • Fill-up the form available in your dashboard account and wait for admin approval.
  • After your account is approved the first step to do is create a department located at HRD -> Tools -> Department.
  • Now ready to create employee master data located at HRD -> Employees.
  • Explore the HR Payroll user guide manual as reference for self-testing.

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Contact Us, those organizations need to modernize HR Management Tools and a paperless solution to speed-up the entire process of human resources and the automation of timekeeping to payroll processing that every process module has approvals.