CONDITION: Non-worked time is counted toward overtime, but worked hours are not coming out correctly. Holiday is last day of pay period.
SOLUTION: Since Holiday hours cannot become Overtime in RealTime 3.5, this will happen when the holiday occurs on the last day of the week
To work around it, you can specify that the PTO Hours should be processed first, which causes them to accrue in the Overtime engine before the Worked hours
This setting is located in Setup >> Program Options >> Reports tab -> "Process PTO First"