Skip to main content

How to add and manage employee pay rates and overtime rates

You can manage an employee’s base pay rate and set up overtime rates directly in the Pay rates section of their profile. Overtime options will only appear after a base rate has been entered and saved.

Rachel Fisch avatar
Written by Rachel Fisch
Updated over a month ago

Add or edit a base pay rate

1. Go to the employee’s pay rates

  • From Business settings, open the Employees tab

  • Click the three dots () beside the employee and select Edit pay rates

2. Create or update the base rate

If a rate hasn’t been entered yet, fill in the required fields under Create a pay rate:

Field

Description

Pay schedule

Select the applicable payroll schedule

Title

Enter a label to identify the rate (e.g. “Hourly – Warehouse”)

Pay type

Choose Hourly or Salary

Pay rate

Enter the employee’s hourly or salary amount

Expected hours per week

Required for salary employee proration

Effective from

The start date for the rate

Effective to (optional)

Use this if the rate should expire or be replaced

  • Click Save to apply the rate

💡 Once a pay rate has been used in a payroll, it cannot be edited or deleted. If changes are needed, enter an Effective to date to close it and create a new rate.


Add an overtime rate (after the base rate is saved)

Once a base pay rate is saved, the Overtime rates section will appear below.

1. Add a new overtime rate

  • Click Add overtime rate
    A new row will appear for input.

2. Complete the overtime rate fields

Field

Description

Overtime type

Select how the rate is applied (e.g. Rate multiplier)

Rate multiplier

Enter a value like 1.5 for time-and-a-half

Effective overtime hourly rate

Auto-calculates based on the base rate

Effective from

Set the start date

Effective to (optional)

Use if the rate is temporary

  • Click Save to apply the overtime rate

💡 You can enter multiple overtime rates for different scenarios, like 1.5x for daily OT and 2x for holidays.

Disclaimer: This article is not intended to provide tax, legal, benefits, financial, or HR advice. Since laws and regulations are subject to change and may differ by location, please consult a legal or HR professional for personalized guidance.

Did this answer your question?