You would set up payroll codes for the different scenarios you want to report on.
The typical payroll codes are
- Work - if necessary different types of work if they have impact on payroll
Overtime can be calculated or manually entered. You can pay the overtime or maintain a Overtime Balance. The latter requires that you set up two Overhead types - one for Credit (earn) and one for Debit (use).
You can reference payroll codes from (priority ordered): Activity Type, Project, Resource, User, Custom Settings