Payroll

Overtime, in plain English.

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Overtime is the wage premium paid once an employee's hours cross a statutory or contractually agreed threshold, calculated on the regular rate rather than base pay alone.

Read the full answer

The threshold and premium rate come from the applicable labour standards legislation, not the employer. You configure the rule per jurisdiction and Workzoom applies it on every pay run.

How Overtime works.

Overtime is time paid at a premium once hours cross a statutory or contractual threshold. That threshold may be daily, weekly, or averaged over an agreed period, and which applies is set by jurisdiction and sometimes by role or collective agreement. The calculation also turns on the regular rate, which in many jurisdictions must include non-discretionary bonuses and shift premiums rather than base pay alone.

Where Overtime goes wrong.

  1. The common error is applying a weekly threshold where the jurisdiction sets a daily one, or the reverse, which either overpays or underpays every affected shift.
  2. A close second is calculating the premium on the base rate when the regular rate must include shift differentials and non-discretionary bonuses, understating what is owed.
  3. Averaging hours across a period without the written agreement most jurisdictions require for averaging turns a compliant schedule into a violation.
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In the product

How Overtime runs on Workzoom.

Overtime is part of the Workzoom Payroll Suite. Workzoom runs HR, workforce, and talent on a single employee record across ten countries: Canada, the United States, the Bahamas, Jamaica, Trinidad and Tobago, Barbados, Antigua and Barbuda, Anguilla, the Cayman Islands, and the United Kingdom. Full gross-to-net payroll runs live in Canada, the United States, and the Bahamas. Pricing starts at $4 per employee per suite per month.

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Questions about Overtime

Overtime is the wage premium paid once an employee's hours cross a statutory or contractually agreed threshold, calculated on the regular rate rather than base pay alone. The threshold and premium rate come from the applicable labour standards legislation, not the employer. You configure the rule per jurisdiction and Workzoom applies it on every pay run.
Overtime is time paid at a premium once hours cross a statutory or contractual threshold. That threshold may be daily, weekly, or averaged over an agreed period, and which applies is set by jurisdiction and sometimes by role or collective agreement. The calculation also turns on the regular rate, which in many jurisdictions must include non-discretionary bonuses and shift premiums rather than base pay alone.
The common error is applying a weekly threshold where the jurisdiction sets a daily one, or the reverse, which either overpays or underpays every affected shift.

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