Banked Overtime allows employees to accumulate overtime hours and store them for future use rather than receiving immediate payment. This feature is particularly useful for organizations aiming to provide employees with more control over their work-life balance by letting them convert excess overtime into time off.  

How to Set Up Banked Overtime

I. Create a New Time Off Type Policy

1. Navigate to Setup > Time Off. 
2. Click the "+ New" button to add a new time off type. 
3. Enter the required fields as normal with a time off type at the top of the window. 
   Note: The banked overtime time off type can only be in 'hours'.
   
4. From the Entitlement Policy section, for "Policy Type", select 'Banked Overtime'. 
5. Add a pay code for the accrual and, if desired, define the maximum balance and units that can be requested. The accrual will be transferred to payroll, but it will only impact an employee's pay once the employee uses it. 
6. Assign the time off type to employees on the left as required. 
   Note: Employees can only be assigned to one 'banked overtime' time off type at once. 
   

II. Configure Overtime Group Setup

1. Navigate to Setup > Overtime. 
2. Click on the overtime group you wish to configure. 
3. Select a rule in the overtime group.
4. Enable the option “Allow to be banked”. Enabling this option will mean that any overtime that is calculated with this rule can be banked.
5. Enter the "Banked Multiplier". 
   E.g. If the multiplier is set to "2", this means that for each hour of overtime worked, employees will accumulate two times (double) the amount of time in their overtime bank. For example, if an employee works 1 hour of overtime, then 2 hours will be banked instead of 1 hour.
   
6. Save the overtime rule and repeat for all other rules in the group, as well as any other overtime group as required.
   Note: The overtime group must also be assigned to employees in order for them to calculate and be able to bank overtime.
   

Using Banked Overtime

Once Banked Overtime is set up, employees can easily manage their overtime hours. 

Note: If an employee is assigned the banked overtime time off type, but not an overtime group, this means that the system will not automatically calculate overtime for the employee to bank. However, you may adjust the balance for an employee to take banked overtime that you manually enter in for them. If an employee is assigned an overtime group that allows them to bank overtime, but not assigned the banked overtime time off type, this means that the system will allow them to bank overtime in the timesheet, but not use it after banking. 

I. Banking Overtime

When entering a timesheet, if overtime is worked, the system will prompt the option to bank it. If none are banked, then all overtime worked will be paid out. 

The timesheet will display the total available overtime hours that can be banked, and you can choose how many hours and/or minutes of the worked overtime to bank.

Once the timesheet is approved, the overtime to be banked will be added to the employee's banked balance in the relevant time off type, taking into consideration the overtime multipliers that you had set up in the overtime rules earlier. 
Note: Overtime will not be banked if the timesheet is in a draft, pending, or rejected state. If a timesheet is approved, then rejected, overtime will not be banked.

II. Requesting Time Off

To use banked overtime, employees will follow a process similar to other time off requests. 

1. Navigate to Time Off > Calendar or Requests.
2. Click the "+ New" button
3. Select the Banked Time Off type that you created.
4. Choose the date and enter the number of hours and click on the 'Send' button at the bottom right. Once the request is approved and the employee takes that time off, it will deduct from the relevant balances for the employee.