Overview: Employee working in any organization submit time card to log hours worked. Sometime they work for more than regular hours and expect to have those extra hours count towards overtime. Accordingly wages should also calculate based on overtime rates. This article will explain the whole process from configuration to time card entry with payroll process in Oracle HCM Cloud application.
Note: It is assumed that the reader is having basic concept of time card configuration like layout, layout component, rule, rule set as well as time card element creation for payroll processing within Oracle HCM Cloud
We will use this scenario to walkthrough the process: Employee working in night is considered for night shift while employee working more than 8 hours is under overtime hours. Hence there are three elements (Regular, Night shift and overtime) needed to use in time card processing as well as payroll processing.
Create three elements.
- Regular – Regular Hourly Wages TL
- Night Shift – Night Hourly Wages TL
- Overtime – Overtime Hourly Wages TL
Oracle has provided the delivered template “Shift Premium Template” for calculating the night hours and regular hours but since we have overtime calculation in regular hour also, We need to create custom fast formulas which return multiple overtimes and thereafter create custom Rules Template using the custom fast formulas and use this template for creating rules.
Rates definitions based on overtime
Time card with overtime
Employee Hourly Rate
Payroll run result
Payroll Activity Report result for this employee
Night Hourly Wages TL = Night Hourly Wages TL Hours Worked * Salary amount * Rate
i.e., 4 * 32.84 * 1.5 == 197.04
Similarly, Regular is 48 * 32.84 == 1576.32
And, overtime is 21.50 * 32.84 * 1.5 == 1059.09