How can I correctly factor in overtime in the payroll calculation?
April 10, 2024 | 40,00 EUR | answered by Claudia Köhler
Dear tax advisor,
my name is Otto Huber and I am the managing director of a medium-sized company. In our business, overtime hours are regularly worked, which I have been manually entering in the payroll. However, I have a feeling that there may be errors in this process and I want to ensure that the overtime hours are correctly accounted for.
The current situation is as follows: We record the employees' overtime hours on an Excel sheet and then enter them in the payroll. There is no precise documentation on when the overtime hours were worked and whether they have already been compensated. I am concerned that this could lead to discrepancies and therefore want to find a more efficient and error-free solution.
My question to you is: How can I correctly account for overtime hours in the payroll to avoid errors and optimize the process? Are there software solutions that can assist me with this? What legal requirements do I need to consider and how can I ensure that everything is legally sound?
Thank you in advance for your support and I look forward to your professional advice.
Best regards,
Otto Huber
Dear Mr. Huber,
Thank you for your inquiry regarding the correct consideration of overtime in the payroll. It is understandable that you are concerned about potential errors in manual recording and are therefore looking for a more efficient and error-free solution.
To accurately consider overtime in the payroll and avoid mistakes, it is advisable to rely on a professional software solution. There are specialized programs that allow for easy and accurate recording of overtime and automatic integration into the payroll. This software can help streamline the process and prevent discrepancies.
When selecting a software solution, make sure it complies with legal requirements for recording and compensating overtime. It is important that the software accurately and legally documents all relevant data such as working hours, overtime, and compensatory time. Additionally, the software should offer the ability to accommodate individual work hour models and regulations to ensure that all employees are compensated correctly.
To ensure legal compliance, I recommend seeking advice from an experienced tax advisor or specialist. A professional advisor can help you understand legal requirements and ensure that your payroll meets legal standards.
I hope this information has been helpful and I am available for any further questions. Thank you for your trust and I wish you success in optimizing your payroll.
Best regards,
Claudia Köhler
