Lathem Time Clock and QuickBooks Online Payroll Overtime Limits
Learn why Lathem time clocks may stop sending hours over 40 to QuickBooks Online payroll as overtime and what steps you can take to resolve the issue.
Many businesses use Lathem time clocks to track employee hours and push that data into QuickBooks Online for payroll processing. When employees work more than 40 hours in a week, the overtime portion sometimes fails to appear in QuickBooks Online payroll as expected.
Overtime transfer limits with Lathem time clocks
Lathem devices are configured to send regular hours and overtime hours as separate fields to QuickBooks Online. In some setups the overtime field is capped at 40 hours, meaning any hours beyond that threshold are not transmitted. This limit is often a default setting in the time clock’s export template or in the integration map used by the payroll connector.
Checking your Lathem time clock configuration
Log into the Lathem administrative console and locate the export or integration settings for QuickBooks Online. Verify that the overtime hours field is mapped to the correct payroll item in QuickBooks Online and that no maximum value is imposed on that field. If you see a value such as “40” entered as a cap, adjust it to a higher number that reflects your typical overtime needs or remove the cap entirely.
Testing overtime data in QuickBooks Online payroll
After adjusting the settings, generate a test time sheet that includes an employee with 45 hours worked for the week. Export the data from the Lathem clock and import it into QuickBooks Online using your usual process. Review the payroll preview to confirm that the 40 regular hours and the 5 overtime hours appear as separate line items. If the overtime still does not show, check the QuickBooks Online payroll item settings to ensure the overtime pay type is active and configured to accept imported hours.
Next steps if overtime still does not appear
If the overtime hours continue to be missing after verifying both the Lathem export and QuickBooks Online payroll item configuration, run a small payroll run with only the test employee’s overtime hours. This isolates the issue and lets you see whether the problem lies in the data transfer or in the payroll calculation step. Use the results to decide whether further adjustments to the Lathem export map are needed or whether you should consult the Lathem support team for guidance on their integration limits.