By Justin Kirkland
With the looming overtime exemption rule change coming to fruition in our near future, you are probably wondering what you will need to do with your Greenshades products. The good news is that I’m here to help you get a general idea of what will need to be done.
Before I dive into the changes that you will have to make on GreenshadesOnline.com please make sure that you read Chris Hadden’s blog on “Overtime exemption rules and how they impact your business.”
Let’s look at the options on Greenshades Online that will help you deal with the OT changes. The first option is to raise the pay of the employees that are affected to be over the threshold of $913 per week. This sounds great for the employee, but not all businesses can handle such a drastic pay increase to its employees’ wages.
The second and simplest option is to begin tracking hours for these employees. If you don’t already, you should start right now. We also recommend setting up OT codes for the salary employees on Greenshades Online, as well, just in case these employees start hitting OT.
If your employees are already using timesheets to track salary hours, you will only need to make a few changes.
- You will need to create a new pay code in your accounting package that will be used to track overtime pay (do the same thing for double-time, if it applies to your company). Create a new time code on GreenshadesOnline.com for the new pay code(s).
- Then, you will need to edit the existing time-code by turning on the “Counts towards over/double-time” option and then include the time code(s) you just created.
Alternatively, you can convert the affected employees to hourly pay.
- You can either re-purpose the existing pay group (If all employees within it are affected) or you can elect to create a new one.
- In either case, you will need to create new pay codes in your accounting package, for the hourly entries, overtime, and double-time (if applicable).
- Then, create a new time code or edit an existing one for the hourly entries and create a new time code for the overtime and double time (if applicable). Ensure that the hourly code is set to “Counts towards Over/Double-time” with the new overtime code selected.
- Lastly, create a new pay group for these employees. Make sure that you have “Track by Time Codes” enabled. You will also need to enable whatever entry methods you would like these employees to use, such as time clock and manual entry.
If the affected employees are not currently tracking hours, then you must create a pay group and associated codes. These employees may be paid salary or hourly.
- You will first need to create new pay codes in your accounting package for the hourly or salary time entries, overtime, and double time (if applicable).
- Then create a new time code for the hourly or salary time entries, and create a new time code for the overtime and double-time (if applicable). Ensure that the hourly code is set to “Counts towards over/double-time” with the relevant OT code selected.
- Lastly, create a new pay group for these employees. Make sure that you have “Track by Time Codes” enabled. You will also need to enable the entry method(s) you would like these employees to use, such as time clock and manual entry.
Making these changes on your own may sound daunting if you have not worked with the Timesheets module on Greenshades Online since you created the settings the first time. The good news here is that we have an entire support team that is ready and able to assist you with any of the needed changes. They can be reached at firstname.lastname@example.org or by phone at 888-255-3815, option 1.
Click here to read our powerpoint presentation on the overtime regulations and changes.