Anyone know of a payroll software the track bank hours. When an employees workers overtime but doesn’t want to get paid, instead would like to bank the hours to be paid out at a later date.
I don’t believe banking hours is an acceptable practice - I don’t believe anyone builds software to accommodate this. just keep track in a spread sheet.
They used to do this at the major accounting firm I worked at (PwC) as we worked tons of OT during tax season then we got to take it off as paid time off in the summer. They kept track of it somehow.
Just keep track of it in a spreadsheet. Also, make sure it’s in the employee agreement, since labour laws require overtime to be paid at a higher rate than regular time.
QB Time (formerly Tsheets) can do this. They call it comp time. It’s a special option you have to request to have turned on. In the approval process, when someone has booked overtime for a given day it’ll give the reviewer the option to either pay out or bank as comp time.
The only thing I don’t like is the allocation to comp time is recorded at the end of the given review period (normally weekly) unless you specifically choose a different period. If your on bi-weekly payroll it’ll work well. Semi-monthly still works, but is a bit more finicky.
Once it’s banked, the employee can opt to use it and the employer can approve it.
Here’s a suggestion how to do it in Sage 50 (copied from SageCity.com):
You can set up another hourly rate called Banked Hours and select the appropriate taxes to be deducted, then set up another deduction called Banked Amount to enter the net amount of the banked hours to be withheld. It will show up on paystub and continually accrue until the employee wants to be paid out. However it will not carry over into the next calendar year so you will need to make an adjustment on Jan 1 to have the accrued banked amount show up again.