Hi judy4,
Thanks for reaching out to us with this.
What did you mean by payment type O?
I'm not 100% certain, but I think you might be referring to creating a new Pay Category?
You are able to do this by going into the Employees tab and then selecting Payroll Settings.
From there you can go to Pay Categories and select the green Add button which will allow you to create and configure a new type of Pay Category which you can use in the pay runs.
I'm not too sure if this was what you were referring to so let me know and I'll try my best to follow up after you've responded.
Kristian.