Overtime and Shift Loadings
If you’re going to be paying overtime and shift loadings, you need to become familiar with the relevant employee award. In particular, look to see whether overtime loadings are calculated on the normal casual hourly rate or on the base hourly rate that part-timers receive. Also, take care when paying shift loadings: the amount due often varies according to the number of hours worked; the day of the week and the age of the employee. How do I set up overtime loadings in MYOB Payroll?If you pay employees overtime (for example, paying time-and-a-half or double-time) then you need to have separate wages categories for each kind of loading. Go to Payroll Categories, click the Wages tab and see what’s there. (MYOB software usually comes with Overtime (1.5x) and Overtime (2x) as default categories.) If you need to create a new category, click New. Enter a suitable description as the Wages Name and select Hourly as the Type of Wages. In the Regular Rate Multiplied By field, specify what kind of overtime this is. For example, to create a new wages category for double-time and a half, you would create a category called ‘Overtime (2.5x)’ and you would enter 2.5 in the Regular Rate Multiplied By field. Casuals and Overtime LoadingsIf you employ casuals, be careful with overtime loadings. In many awards, double-time is not double the casual rate, but is double the base hourly rate, plus the regular holiday loading. The contents from this page are taken from Making the Most of MYOB Payroll, 2nd edition, by Veechi Curtis, available online for only $19.95 << Back to MYOB Payroll page
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