Overview

Our Payroll Report, found under Attendance Reports in the Reports Module, provides a detailed breakdown of regular and overtime hours based on your local labor laws and settings selected in the Set Up Module. This ensures accurate payroll reporting and helps your center remain compliant with applicable regulations.
 

How Overtime is Calculated

Overtime calculations are determined by the location of your center, which is configured in the Set Up Module. The system automatically applies the correct rules based on whether your center is in Canada or the United States, and further adjusts for provincial or state-specific overtime thresholds.
 
🟢 Overtime Thresholds by Canadian Province/Territory
The following provinces and territories require 1.5x pay for hours worked beyond the stated threshold. Where both daily and weekly thresholds exist, the greater of the two is used to ensure employees receive the most favorable overtime pay.

  
Canada, overtime can generally be banked at 1.5 hours per overtime hour worked—subject to a written agreement with the employee—except in Alberta, where it is banked at 1 hour per overtime hour, and New Brunswick, where banking overtime is not permitted.

  
🟢 States with Daily or Stricter Overtime Rules:

🟡 States That Follow Federal (FLSA) Only Rules:
These states do not impose daily thresholds or additional provisions beyond federal standards. Overtime is paid at 1.5x regular rate for hours worked over 40 hours/week: Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky (for non-7-day workweeks), Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada (if above 1.5x min. wage), New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
 

Report Period and Payroll Schedule

When generating the Payroll Report, you select a Start Date and End Date for the applicable pay period. The system assumes you are using consecutive pay periods (e.g., May 1–15, May 16–31). If the period ends in the middle of a calendar week, the system applies daily overtime rules only for that partial week. If, based on full-week calculations, additional overtime would have been earned, the difference will be shown in the Prior Period OT Adj. column in the following pay period report.
 

Payroll Report Rounding Option

You can configure how payroll hours are rounded via Set Up > Center > Customizations > Payroll Preferences.
 
None – Exact hours, no rounding
Nearest 5 minutes
Nearest 10 minutes
Nearest 15 minutes (7-minute rule)
 
 

How to Access and Read the Payroll Report

To view the payroll report, which included overtime hours:
 
Navigate to the Reports Module.
Select Attendance Reports.
Choose Payroll Report.
 
The report will automatically display a breakdown of regular and overtime hours, applying the appropriate rules based on the center's location, ensuring accuracy and compliance.
 
Sample Report


Overtime Hours: Overtime earned during the report period, calculated from full calendar weeks (Sun–Sat) using the greater of daily or weekly overtime rules (e.g., over 8 hrs/day or 44 hrs/week in Alberta).

Prior Period OT Adj: Adjustment for the partial week at the start of the period. If weekly OT exceeds daily OT already counted, the difference appears here in the next pay period.

Updated on: 29/05/2025