How to Create an Overtime Sheet in Templates in Excel
The U.S. Fair Labor Standards Act (FLSA) sets standards in managing the maximum number of work hours, and the maximum allowed work hours for overtime. When you enable overtime work to your employees, it creates production, labor costs, and wage effects in your company. That's why it's critical to develop a timesheet so you can calculate the overtime rendered by your employees.
Keep on reading this article to know how you can create an overtime sheet that will help you organize and manage your employee’s overtime pay.
1. Use Excel Software
In excel, you can easily create a spreadsheet for your timesheet. It's ideal for this kind of document because you only need to decide the number of cells and what information you want to add in into those cells. After which, you can convert your file to other formats like PDF or Word if you need to.
2. Type in the Employee’s Name
List down all your employees so you can identify who rendered overtime. You only need to search for the employee in your system and put in the hours they worked outside their contractual work hours.
3. Specify the Time
It's crucial to specify the contractual working hours so you can determine the number of hours that each employee rendered as overtime.
4. Add Employee Rate
Your employee rate will be the determining factor on the overtime pay you'll provide to your employee. You should be accurate with your computations as this can create misunderstanding and demotivate your employees should a mistake happen.
5. Make It Flexible
Because you might be adding more information in your overtime spreadsheet, making it adjustable will surely give you the convenience you desire. You can add a blank spreadsheet where you can fill in details about your employees' overtime work hours.
What is an overtime sheet?
An overtime sheet is a document that records the excess time an employee worked in order to determine his/her overtime pay.
What is a daily, weekly, and monthly overtime sheet?
These three have the same purpose and contains the same format. Their only difference is that they are recorded at different times which is within a day, week, and month respectively.
What is a timesheet?
A timesheet is a record of the time spent by an employee to his job or project. Businesses use this document to record the productivity of an employee, as well as to determine the payment according to their finished job.
What are the inclusions of an overtime sheet?
In order to calculate the number of hours and the overtime rate of an employee in excel, it has to have key elements. An overtime sheet should contain the following content so ensure that it records the essential information:
1. Employee name
2. Employee’s rendered overtime hours
3. Overtime pay
4. Overtime rate
5. Regular time
Why is an overtime sheet necessary?
Overtime sheets are necessary so that the employee and employer can track down the time the former spent to do his job and pay him/her according to the overtime rate.