Overtime Tracker for Accurate Hours & Payroll

An overtime tracker is software that records and calculates overtime hours using time tracking features. By calculating and differentiating overtime from base hours, overtime trackers can help businesses balance overtime costs, manage employee schedules, and remain compliant with overtime laws. 

To keep track of overtime pay, you can use timesheets to record base hours worked and indicate overtime hours that exceed that number. Any hours that exceed an employee’s base hours must be paid at an overtime rate — usually “time and a half” (1.5 times their base pay rate). Using a time tracking app can help you calculate overtime faster and eliminate the risk of costly mistakes. 

You can track work hours with time tracking software, timesheet apps, or by manually calculating your work hours. Time tracking and timesheet software can help speed up the process of manual time entries and lead to correct overtime wages, more accurate payments, and fewer mistakes. 

To track overtime, you’ll need to first track base hours manually or with a time tracking tool. From there, determine how many hours exceed the base hours and, therefore, qualify for overtime (usually paid at 1.5 times an employee’s standard hourly rate).

Time tracking software speeds up the overtime tracking process and ensures these calculations are correct for more accurate payments. It also reduces the likelihood of costly mistakes and keeps teams from needlessly working excessive hours. Plans range from free time tracking tools for solos to robust, enterprise-grade software for unlimited users.

The formula for measuring overtime involves multiplying an employee’s hourly rate by 1.5 and then multiplying that rate by the number of extra hours (overtime hours) the employee worked.