How to add and manage employee pay rates and overtime rates
Last updated: August 1, 2025
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.
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.