Articles in this section
How to create a new Hourly Pay Policy
How to create a new Hourly Pay Policy
Set up an hourly pay policy, including overtime rules, pay codes, and lunch break settings.
Creating custom pay policies in TimeTrakGO lets you tailor time and labor calculations to specific employee groups. This article walks through creating a new hourly pay policy, including overtime settings, pay codes, and lunch break rules.
Step 1 Open Pay Policies and Overtime
Log in to TimeTrakGO and go to the Feature Manager. Under System Options, click Settings on Pay Policies and Overtime.
Step 2 Add a New Pay Policy
The Pay Policies page lists your existing policies. Click + Add Policy.
Step 3 Provide Policy Details
- Enter a descriptive Policy Name (e.g., "Hourly with Overtime").
- Select the Policy Type. For this example, choose Hourly.
- Click Create Policy.
Step 4 Configure Overtime Settings
Select the new policy in the list. On the Overtime tab, turn on the overtime rules that apply:
- Weekly Overtime: pay overtime (1.5x) after a set number of hours in a week, for example 40.00.
- Daily Overtime: pay overtime after a set number of hours in a day.
- Daily Double Time: pay 2.0x after a set number of total hours in a day.
- California Rules: turn on to apply California overtime rules.
Note: The Premium Days tab, for elevated pay rates on specific days, is available on the ULTIMATE plan.
Step 5 Verify Pay Codes
- Open the Rules tab.
- Under Pay Code Mapping, review the Regular Pay, Overtime Pay, and Holiday Pay pay codes. Click + Add Pay Code if you need a new one.
- Make sure the pay codes align with your payroll system and reporting requirements.
Step 6 Configure Lunch Break Settings
Open the Lunch Breaks tab. Under Deduction Rules, choose one option:
- Auto-Deduct Lunch Break: deduct a set number of minutes after a set number of hours worked, for example 60 minutes after 5.00 hours.
- Clocked Lunch Break: employees clock out and back in for lunch.
- No Lunch Break: no lunch is deducted.
Tip: Test a new pay policy with a small group of employees before rolling it out, and review pay policies periodically to keep up with changing labor laws.
Related Articles
- Setting up salaried employees instead? See How to create a new Salary Pay Policy.
- Once your policy is ready, see How to assign a Pay Policy to an Employee.
- For a full worked example, see Example Hourly Pay Policy.