Automatic time deductions are included on worker timecards with other time clock entries for the payroll period. The amount of the time deduction will be displayed in the unpaid hours column of the worker timecard.
Since employees aren't punching out for lunches, if they happen to work through their lunch break the automatic time deduction will still occur. Here's an easy way to make sure employees still get paid for working during their scheduled lunch break. First, create a new activity called something like 'Working Lunch' and set the type to manual entries only. Now, whenever an employee works through lunch you can add a manual entry for 'Working Lunch' for the time they remained at the office. This will offset the automatic lunch deduction so employee timecards reflect correct daily and weekly overtime totals.
Time Clock Software Specialist