The settings for Payroll and Overtime are Different
Question:
How should I set up the Payroll and Overtime calculation cycles when they are different?
For example, payroll cut off is on the 20th of each month, while overtime is cut off at the end of the previous month; or salaries are paid twice a month, but overtime is paid once a month during the second payroll cycle.
Answer:
The admin can set up Payroll and Overtime cut off dates in several ways.
🏷️ Case 1
If Salary Payment Schedule is set to once a month, you cannot select a different payment schedule for Overtime. Overtime payments will also be once a month, but the cut off date for Overtime can be different from salary payment date.
If the Overtime period is the current period, the overtime cut-off date cannot be after the Salary cut-off date.
| Payroll Settings |
Payment Period: August 2025 |
|---|---|
| Salary | Salary Cycle |
| Cut off Date: End of the month | 01/08/2025 - 31/08/2025 |
| Payment Schedule: Once a Month | |
| Overtime pay | Overtime Cycle |
| Cut-off date: 20 | 21/07/2025 - 20/08/2025 |
| Period: Current |
🏷️ Case 2
| Payroll Settings |
Payment Period: August 2025 |
|---|---|
| Salary | Salary Cycle |
| Cut off date: 25 | 26/07/2025- 25/08/2025 |
| Payment Schedule: Monthly | |
| Overtime pay | Overtime Cycle |
| Cut-off Date: End Month | 01/07/2025 - 31/07/2025 |
| Period: Previous |
🏷️ Case 3
If your Salary Payment Schedule is twice a month and overtime is once a month, you cannot change the Overtime cut off date. The Overtime cut off date is the same as the Salary cut off date; you can only select whether the overtime falls within the current or previous period.
| Payroll Settings |
Payment Period: August 2025 |
|---|---|
| Salary | Salary Cycle |
| Cut-off Date: End Month |
First Cycle: 01/08/2025 - 15/08/2025 Last Cycle: 16/08/2025 - 31/08/2025 |
| Payment Schedule: Twice a month | |
| End of First Salary Cycle: 15 | |
| Overtime pay | Overtime Cycle |
| Cut-off Date: End Month |
First Cycle: Not displayed. Last Cycle: 01/08/2025 - 31/08/2025 |
| Payment Schedule: Once a Month | |
| Period: Current |
🏷️ Case 4
| Payroll Settings |
Payment Period: August 2025 |
|---|---|
| Salary | Salary Cycle |
| Cut-off Date: End Month |
First Cycle: 01/08/2025 - 15/08/2025 Last Cycle: 16/08/2025 - 31/08/2025 |
| Payment Schedule: Twice a month | |
| End of First Salary Cycle: 15 | |
| Overtime pay | Overtime Cycle |
| Cut-off Date: End of the month |
First Cycle: Not displayed. Last Cycle: 01/07/2025 - 31/07/2025 |
| Payment Schedule: Once a Month | |
| Period: Previous |
🏷️ Case 5
If the Payment Schedule for both Salary and Overtime is twice a month, it is not possible to change the overtime cut off date. The overtime cut off date is the same as the salary cut off date. You can only select whether the overtime period belongs to the current or previous period.
| Payroll Settings |
Payment Period: August 2025 |
|---|---|
| Salary | Salary Cycle |
| Cut-off Date: End Month |
First Cycle: 01/08/2025 - 15/08/2025 Last Cycle: 16/08/2025 - 31/08/2025 |
| Payment Schedule: Twice a month | |
| End of First Salary Cycle: 15 | |
| Overtime pay | Overtime Cycle (OT Cycle) |
| Cut-off Date: End Month |
First Cycle: 01/08/2025 - 15/08/2025 Last Cycle: 16/08/2025 - 31/08/2025 |
| Payment Schedule: Twice a month | |
| End of First Salary Cycle: 15 | |
| Period: Current |
🏷️ Case 6
| Payroll Settings |
Payment Period: August 2025 |
|---|---|
| Salary | Salary Cycle |
| Cut-off Date: End Month |
First Cycle: 01/08/2025 - 15/08/2025 Last Cycle: 16/08/2025 - 31/08/2025 |
| Payment Schedule: Twice a month | |
| End of First Salary Cycle: 15 | |
| Overtime pay | Overtime Cycle (OT Cycle) |
| Cut-off Date: End Month |
First Cycle: 16/07/2025 - 31/07/2025 Last Cycle: 01/08/2025 - 15/08/2025 |
| Payment Schedule: Twice a month | |
| End of First Salary Cycle: 15 | |
| Period: Previous |