What is Banked Overtime?
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.
A) How to Set Up Banked Overtime:
1) Create a New Time Off Type Policy:
- Log in to the Harmony TNA module.
- Navigate to Setup > Time Off.
- Click the + New button.
- From the Entitlement Policy dropdown menu, select Banked Overtime.
- 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 be processed in payroll once the employee uses it.
- Assign the time-off type to employees on the left.
Please note that the time off type unit can only be in hours.
2) Configure Overtime Group Setup:
- Go to Setup > Overtime.
- Click on the overtime group you wish to configure.
- There will be an option “Allow to be banked”. Ensure this box is selected to enable banking of overtime for this group.
For example, if the multiplier is set to 2, 1 hour of overtime will be banked as 2 hours instead of just 1 hour.
This means that for each hour of overtime worked, employees will accumulate double the amount of time in their overtime bank.
B) Using Banked Overtime:
Once Banked Overtime is set up, employees can easily manage their overtime hours:
1) Banking Overtime:
When entering a timesheet, if overtime is worked, the system will prompt the option to bank it in the employee’s timesheet.
The user can choose how many hours of the overtime to bank. The system will display options like Banked Overtime To Be Paid Out: X hr, Payout []h[]m of overtime.
This ensures the overtime is added to the employee's banked balance, considering any overtime multipliers set up in the system.
2) Requesting Time Off:
To use banked overtime, employees will follow a process similar to other time off requests.
Navigate to Time Off > Calendar or Requests. Click the + New button, then select the Banked Time Off type.
Choose the date and enter the number of hours and click on the save for approval button at the bottom right.
