Work - Overtime, Allowances & Deductions

In Karmly you can specify Overtime, Deductions and Allowances for the Work that can be set on your Placement. These can be used to specify rules to automatically trigger overtime rates, or to provide allowances or incur deductions. 

Overtime

Overtime can be used to pay or bill time at a different rate once the candidate records more than the specified total hours against this Work for the week, or on specific days of the week.

The Pay Rate and Bill Rate allow you to specify how the standard Pay and Bill rate should be modified when paying and invoicing any Overtime hours. The Pay rate can be a multiplier or an additional amount. The Bill rate can be a multiplier, additional amount or a specific margin.

In the above example, any candidates recording time against this Work on any day Monday through Friday will have any time in excess of 8 hours on that day paid and billed at 1.5x the usual rate. 

The Account Code can be used to specify the account code that should be used for invoice lines generated from the Overtime, and if you're connected to an external payroll system the Pay Item can be set to specify which Pay Item these payroll lines should be sent to. 

Multiple Overtime Rules

You can add multiple overtime rules to a single Work, but in order to calculate correctly they must be of the same type (per day, or total weekly hours). For example, you can set up different rules for weekdays, Saturday, and Sunday, and even multiple rules for the same day (e.g. over 8 hours for time and a half, then over 10 hours for double time). You can also set up multiple weekly rules - e.g. over 40 hours for time and a half, and then over 50 hours for double time.

However, you shouldn't apply Total Weekly Hours rules alongside daily rules, as these would result in duplication of overtime.

New Zealand Public Holidays

For New Zealand companies an additional 'Public Holidays' option will appear on Overtime.

Ticking this option and setting the Over hours to 0 allows you to specify that candidates' hours should be paid and billed at 1.5x the normal rate on public holidays. 

If you also use our PayHero Integration this will also include provincial anniversaries, based on the settings in your PayHero company settings or on the candidate's PayHero Team. 

Allowances

Allowances can be used to pay or bill fixed rate allowance amounts rate once the candidate records more than the specified total hours against this Work for the week, or on specific days of the week.

The Pay Rate and Bill Rate allow you to specify a set dollar amount to be paid and charged each time the allowance is triggered. 

In the example above, candidates recording time against this Work will receive a Meal Allowance of $30 per day that they work, as setting the Over hours to 0 will generate the allowance for any quantity of hours on the days specified. 

The Account Code can be used to specify the account code that should be used for invoice lines generated from the Overtime, and if you're connected to an external Payroll system the Pay Item can be set to the Pay Item payroll lines should be sent to. 

Tax on Allowances 

When included on client invoices, Allowances will have Sales Tax applied based on the Tax Rate set on the Work.

For Sales Tax registered contractors, Sales Tax will be applied to Allowances based on the Tax Rate set on the Work. 

For contractors with Withholding Tax rates, allowances will be applied after Withholding Tax is calculated. If you wish to apply the allowance before calculating Withholding Tax, please contact support@karmly.com. 

Deductions

Deductions can be given a name and set to deduct a set rate per hour, day, or week from the Resource's pay. This can be associated with a particular Pay Item for your payroll provider.

In the example above, any candidates recording time against this work would have $1.50 per hour worked deducted from their pay. Deductions are made pre-tax.

It's important to note that like Overtime and Allowances, Deductions will only be generated for Hours of work. The Per Day and Per Week options will generate a deduction if any hours have been worked in that day or that week; Deductions won't be generated for Days or other units. 

Tax on Deductions

For Sales Tax registered contractors, Sales Tax will be applied to Deductions based on the Tax Rate set on the Work. 

For contractors with Witholding Tax rates, deductions will be applied after Withholding Tax is calculated. If you wish to apply the deduction before calculating Withholding Tax, please contact support@karmly.com.