Why is the overtime amount not reflecting in payroll even though a policy is assigned?

This typically occurs when the overtime formula hasn’t been configured in the employee’s salary structure.

Even if an overtime policy is correctly created and assigned:

• The system cannot calculate or process the overtime amount

• Unless the salary structure includes a defined overtime formula linked to that policy

Without this formula, payroll will skip the overtime earnings.

How to Fix It: Editing the Existing Salary Structure

To ensure overtime (or any other component) is calculated, you need to edit the salary structure assigned to the employee and add or update the necessary component/formula. Here’s how:

1. Navigate to Payroll → Settings

2. Select the Pay Groups tab

3. Find the relevant pay group and click the Configure icon
   
   

4. Go to the Salary Structures tab

5. Locate the salary structure currently assigned to the employee

6. Click Edit for that salary structure
   
   

7. Within the structure, click on add calculation update its formula to match your policy
   
   
   

8. Save or Update the salary structure

9. Once saved, payroll runs will include the overtime amount as per the formula