Users can be allowed to bank overtime hours instead of being paid for those hours. Banked time is accumulated against the Banked Time time off type, and can be used when booking time off.
Time is banked using the pay code factor defined in the user’s assigned overtime rule. For example, if overtime hours are paid out at 1.5x the normal rate, and a user works 2 overtime hours that they choose to bank, they will bank 3 hours.
Allowing time banking can increase the amount of time off available to employees, and can potentially reduce the amount of overtime the employer has to pay. Banked time can be provided as a bonus, as a work incentive, or as an alternative to paid overtime.
In most jurisdictions, banked time must be paid out if the employee does not use it.
There are three possible ways to set up time banking for a user.
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Automatic banking |
You choose which type of overtime hours will be banked in the user's overtime rule. The type of hours you choose are automatically banked when the user enters time. |
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User banking |
Users can choose to bank either all of the overtime hours in their timesheet, or none of their overtime hours. |
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Automatic banking + User banking |
If an overtime rule has more than one condition, you can combine the two types of banking. In this case, you would choose one or more conditions to be banked automatically (Automatic banking), and the user could then choose to bank all additional overtime on their timesheet (User banking). |
To set up overtime banking for a user:
If only some users are allowed to bank overtime, create a new template or overtime rule for them.
To enable the Banked Time time off type for a user:
You assign a user an overtime rule with a single condition, and select the Bank if possible check box for that condition:
Weekly hours worked in excess of 40 are paid at 1.5x the regular rate.
In the user’s timesheet template, the Choose whether to Bank Overtime Hours option is NOT enabled.
If the user enters 46 hours in their weekly timesheet, 9 hours (6 hours * 1.5x) will be marked as banked automatically.
You assign a user an overtime rule with a single condition, and DO NOT select the Bank if possible check box for that condition:
Weekly hours worked in excess of 40 are paid at 1.5x the regular rate.
In the user’s timesheet template, the Choose whether to Bank Overtime Hours option is enabled.
In their weekly timesheet, that user enters 46 hours.
If they select Bank Overtime Hours, 9 hours (6 hours * 1.5x) will be banked. If they deselect Bank Overtime Hours, 0 hours will be banked, and 6 hours will be paid at their overtime rate (1.5x regular).
You assign a user an overtime rule that has two conditions:
You select the Bank if possible check box for Condition 2 only.
In a 5-workday timesheet period, the user works 53 hours:
If they select Bank Overtime Hours, all overtime hours will be banked, using the correct rate:
= (10 hours*1.5x) + (3 hours*2x)
= 21 hours banked
If they deselect Bank Overtime Hours, only hours for the condition marked Bank if possible (Condition 2) will be banked, using the correct rate:
= (3*2x)
= 6 hours banked
The 10 hours worked at 1.5x will be paid out, meaning they’ll be paid for the equivalent of 15 regular hours automatically.
Banking time is not possible if:
If time can’t be banked, it will be paid out as overtime.
The user’s Banked Time policy can be used to make manual balance adjustments to their banked time balance. Time off that is accumulated through banking overtime is not reflected in this policy. To view how much banked time is available, check the user’s balance instead.