The serious business of overtime during the silly season
Managing cash flow in any business is vitally important. You need to know what money is coming in, but importantly where it’s going out too. For many small businesses, one of the biggest expenses is staff wages. And when we step into the busy festive season, with all its standard chaos, it’s easy for staff to work more, while employers lose track of overtime expenses.
What is overtime and what exactly are the rules?
According to Fair Work Australia, overtime is when an employee works extra hours. It can include work done:
- Beyond their ordinary hours of work
- Outside the agreed number of hours
- Outside the spread of ordinary hours
Importantly, these extra hours are performed outside what an award or an agreement list as ordinary hours, which will depend on the industry.
Overtime is usually paid at a higher rate and is designed to make up for the employee normally working longer hours or on less desirable workdays, such as the weekend. You can learn more about when overtime applies here.
Keeping track of staff overtime
For any business, it’s important to keep track of the number of hours your staff work, especially overtime hours as these come with a higher cost. Wages can make up a big portion of business expenses so it’s important to ensure management keep proper track of overtime hours, as mistakes made with payroll can lead to:
- Problems with a business’s cash flow
- Legal issues with unpaid wages
- Negative relations between staff and management
Work out your overtime calculations by downloading our free ROI calculator and see how much money you could be saving with Deputy:
Managing staff overtime
Most business owners are overworked and can struggle to keep track of staff overtime, which can lead to problems in profitability, and ultimately the longevity of a business. Deputy can be a key component to running an integrated and profitable business. Deputy simplifies the task of managing staff overtime with:
- Rostering tools
- Time and attendance software
- Award interpretation for premium users
Using automated tools and software ensures you spend less time on business admin and more time on growing your business.
Rostering tools help small businesses ensure they have the right people at work, at the right time. Taking your rostering system online can also help you:
- Manage your team’s schedule in real time, while being offsite
- Take the guesswork out of employee scheduling by taking peak and trough business times into account
- Quickly manage your workforce and even allow staff to swap their own shifts
- Monitor the hours that staff work
- Accurately cost employee expenses (so you never go over budget) and integrate that into your payroll software
Electronic time and attendance management
Another area businesses often struggle with when it comes to managing overtime is through the use of paper timesheets. Using an online timesheet can help you keep on top of staff hours. A system like Deputy also helps you approve and export timesheets easily to your payroll system, and even customise pay rates based on awards and overtime.
Do you struggle to keep on top of staff overtime? Are you looking for help to set up digital staff schedules? Find out how Deputy can take the hard work out of your small business admin tasks, leaving you free to focus on growing your business. Get in touch with our friendly team today on 1300 DEPUTY.
The information contained in this article is general in nature and you should consider whether the information is appropriate to your needs. Legal and other matters referred to in this article are of a general nature only and are based on Deputy's interpretation of laws existing at the time and should not be relied on in place of professional advice. Deputy is not responsible for the content of any site owned by a third party that may be linked to this article and no warranty is made by us concerning the suitability, accuracy or timeliness of the content of any site that may be linked to this article. Deputy disclaims all liability (except for any liability which by law cannot be excluded) for any error, inaccuracy, or omission from the information contained in this article and any loss or damage suffered by any person directly or indirectly through relying on this information.