---
title: "Time Tracking Settings: Payroll Setup & Overtime Rules"
url: "https://help.ontraccr.com/en/article/time-tracking-settings-payroll-setup-overtime-rules"
language: "en"
last_updated: "2025-05-26T23:12:04.395Z"
---

# Time Tracking Settings: Payroll Setup & Overtime Rules

## 💵 **Time Tracking Settings: Payroll Setup & Overtime Rules**

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### ✅ **What This Covers**

This article walks through setting up payroll alignment in Ontraccr and configuring both **manual** and **automatic overtime rules**, including:

-   Weekly, daily, and double OT
-   Special weekend rates
-   OT eligibility prompts

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### 🧭 **Where to Find These Settings**

In the **Web App**:

1.  Go to **Settings > Time Tracking**
2.  Open the following sections:
    -   📅 **Payroll**
    -   ⏱ **Overtime**

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## 📅 **Payroll Setup**

**What it does:**

Aligns Ontraccr’s **pay period calendar** with your company’s actual payroll cycle.

**How to set it up:**

1.  In **Time Tracking > Payroll**:
    -   Select your **pay period frequency**:
        -   Weekly
        -   Bi-weekly
        -   Semi-monthly
        -   Monthly
    -   Set the **most recent payroll closing date** using the calendar

**Why it's important:**

-   Ensures time cards are grouped correctly
-   Controls how reports, exports, and views are organized

**Check your setup:**

Go to **Time Cards > My Cards** — confirm the date range at the top matches your payroll cycle.

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## ⏱ **Overtime Configuration**

### Step 1: Choose Manual or Automatic Overtime

At the top of the **Overtime** settings page:

-   **Manual OT**:
    -   Workers input OT manually during time entry
    -   Ideal for companies with flexible or project-based OT rules
-   **Automatic OT**:
    -   System calculates OT based on thresholds (see below)

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### 📊 **Automatic Overtime Options**

You can mix and match any of the following:

### 1️⃣ **Weekly Overtime**

-   Default: OT after 40 hours/week
-   You can override this value
-   System will auto-calculate OT once threshold is passed

### 2️⃣ **Daily Overtime**

-   Default: OT after 8 hours/day
-   Optional — leave disabled if not needed

### 3️⃣ **Daily Double Time**

-   Default: Double time after 12 hours/day
-   Rate: 2x base wage
-   Can be customized

### 4️⃣ **Saturday Pay Rate**

-   Pay a different rate for **any Saturday hours**
-   Example: 1.1x even if no OT was triggered

### 5️⃣ **Saturday Overtime**

-   Set OT multiplier for Saturday work (1.5x or 2x)

### 6️⃣ **Sunday Pay Rate + OT**

-   Same options as Saturday

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### ⚠️ **OT Eligibility Prompt**

**What it does:**

Adds a confirmation step if a time entry exceeds the daily OT threshold.

**How it works:**

-   At clock-out (or manual entry), workers are asked:
    -   "Was this overtime?"
-   If they say **yes** → time is kept as-is
-   If they say **no** → time is **rounded down** to the OT limit

**Example:**

Worker logs 10 hours, OT limit is 8 → If rejected, time is adjusted to 8.

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### 💡 **Pro Tips & Edge Cases**

-   🔄 You can toggle between **manual and automatic OT** anytime
-   🧠 Use the **OT Eligibility Prompt** to catch forgotten clock-outs
-   🗓️ Weekly OT will still catch total hours, even if weekends are not rated specially
-   📊 Double OT is **optional** and usually used only in strict labor environments