Do you need to adjust a salary for an employee? The adjustment could be for a prorated initial or final paycheck, or if an employee isn't being paid for an entire pay period.
You can't override a salary in our Online Payroll systems. However, you can override the hours worked to make such an adjustment. We explain how.
Calculate hours worked
When creating a payroll our system doesn't allow you to change the employee salary. It does let you modify the hours worked. Therefore before running payroll, you need to calculate the hours worked.
Days not to be paid
Hours worked calculation
Weekly (40 hrs)
40 - (2 x 8) = 24
Every other week (80 hrs)
80 - (1.5 x 8) = 68
Twice a month (86.67 hrs)
86.67 - (3 x 8) = 62.67
Monthly (173.33 hrs)
173.33 - (5 x 8) = 133.33
Monthly (173.33 hrs)
half of the month
173.33 / 2 = 86.67
The calculation of hours worked (as seen above) is straightforward for a salaried employee on a weekly or biweekly pay schedule.
It can be more complicated for an employee on a twice-a-month or monthly pay schedule. In this case, the default hours worked are 86.67 for twice-a-month and 173.33 for monthly.
If an employee isn't to be paid for one day, you'd typically subtract eight hours from the default. On a twice-a-month pay schedule, the employee would be paid for 78.67 hours worked. On a monthly pay schedule, the employee would be paid for 165.33 hours worked.
However, what if a new employee on a twice-a-month pay schedule were to receive a prorated initial paycheck because they missed the first week in the pay period? In this case, you'd have to determine whether the hours to deduct would be for one week (40), or for half a pay period (43.33).
Discuss this with the employee so they understand how their pay is being computed. You should also confirm that the paycheck will be in compliance with applicable labor laws.
Override an employee's hours
Intuit Online Payroll
Go to the Payday tab.
Select the pay schedule of the employee.
Select the employee. Then select the Check Details icon.
A window will pop up. Override the Hours Worked field.
You can put the reason why you want to override the hours in the Memo field.
Select Create. Then select Approve.
QuickBooks Online Payroll
From the left menu, select Workers, then Employee.
Select Run Payroll.
Select the pay schedule of the employee. Then select Continue.
Select the employee.
Under Salary, select the hours worked.
Select adjust Salary this time only.
Enter the hours of unpaid time off. Then select Apply.