Articles in this section
How to create a new Hourly Pay Policy How to assign a Pay Policy to an Employee

How to create a new Salary Pay Policy

B
Brian Zurawski
22 Oct, 2026 - Updated 2 days ago
Pay Policies and Overtime

How to create a new Salary Pay Policy

Set up a salary pay policy, including minimum hours, overtime, and lunch break settings.

Creating custom pay policies in TimeTrakGO lets you tailor time and labor calculations to specific employee groups. Salary pay policies require the PLUS or ULTIMATE plan. This article walks through creating a new salary 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.

Pay Policies and Overtime card in Feature Manager with the Settings button

Step 2 Add a New Pay Policy

The Pay Policies page lists your existing policies. Click + Add Policy.

Pay Policies page with the Add Policy button

Step 3 Provide Policy Details

  • Enter a descriptive Policy Name (e.g., "Salaried with Overtime").
  • Select the Policy Type. For this example, choose Salary.
  • Click Create Policy.
Add Pay Policy window with Policy Name and the Salary policy type selected

Step 4 Configure Overtime Settings, If Applicable

Overtime only applies to Salary Non-Exempt configurations. Select the new policy in the list. On the Overtime tab, turn on the overtime rules that apply, or leave them off for Salary Exempt:

  • 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.

Overtime tab for a salary policy with the overtime rules turned off

Step 5 Verify Pay Codes

  • Open the Rules tab.
  • Under Pay Code Mapping, review the Regular Pay pay code (for example, Salary) and the Holiday Pay pay code. Overtime Pay also appears when overtime is turned on. Click + Add Pay Code if you need a new one.
  • Make sure the pay codes align with your payroll system and reporting requirements.
Rules tab Pay Code Mapping with Salary as the Regular Pay code

Step 6 Configure Minimum Salary Hours and Clocked Hours

Still on the Rules tab, turn on Salary Policy (Enable salary prepay settings for this policy). Then:

  • Under Minimum Hours Configuration, enter the minimum hours expected each day. TimeTrakGO auto-generates salary hours to meet these minimums, and shows the Weekly Total. For Salary Non-Exempt, clocked hours are used but adjusted to meet the weekly minimum. For example, clocking 38 hours generates an additional 2.00 hours of salary to reach a 40.00-hour minimum.
  • Show Clocked and Auto-Generated Hours Separately lets you use an alternate pay code for the auto-generated hours. For example, clocking 38 hours would show as 38.00 Hours Salary plus 2.00 Hours Salary Not Clocked.
Salary Policy toggle with Minimum Hours Configuration and Show Clocked and Auto-Generated Hours Separately

Step 7 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.
Lunch Breaks tab with No Lunch Break selected

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

Powered by Vtiger