Why Commission Based Employee Require Hours Entry?

taile77 · ‎August 13, 2019

First off, I would like to say that it is frustrating to find a way to contact anyone. The button to display phone numbers are "grayed" out. It is time consuming to figure out where to get support even when I'm logged into the Quickbooks Online page. I am almost ready to quit this payroll and accounting software, and am ready to give another online based system like Xero a try.

The reason I am here is because recently I am required to enter in hours for one of my client that is on commission pay resulting in me not being able to progress with completing the pay. One of his employee is also on commission pay does not have this prompt. Why would one require it and the other not? This has only been happening in the past month.

JaneD · ‎August 13, 2019

Good day, taile77.

There are two ways to add the commission pay in QuickBooks Online (QBO). You can either set the employee's pay rate to Commission Only or hourly plus commission compensation.

You can find more information in this article: Employee Compensation and Benefits: The Complete Guide.

To determine the employee's commission pay type, follow these steps:

Go to Employees from the left pane.
Locate and click on the employee's name to open.
If the Pay rate and Additional pay is set to Commission Only, then you're required to enter the hours worked (default built-in feature).
Otherwise, you don't have to enter the hours worked if the commission item is set as an additional pay.

See the Add an employee who works on commission article for more information.

Just so you're aware, our QuickBooks Phone Support Team is open from Monday - Friday, 9am - 8pm ET. While our Chat Support is open from Monday - Friday 7am - 9pm ET, Saturday - Sunday 9am - 6pm ET.

If you missed them, know that you can always visit us here in the Community and post your question. We'll be around to help.

Please let me know if you have any follow-ups or other questions by leaving a comment below. I'm always ready to lend a hand. Wishing you a good one.

View solution in original post

JaneD · ‎August 13, 2019

Good day, taile77.

There are two ways to add the commission pay in QuickBooks Online (QBO). You can either set the employee's pay rate to Commission Only or hourly plus commission compensation.

You can find more information in this article: Employee Compensation and Benefits: The Complete Guide.

To determine the employee's commission pay type, follow these steps:

Go to Employees from the left pane.
Locate and click on the employee's name to open.
If the Pay rate and Additional pay is set to Commission Only, then you're required to enter the hours worked (default built-in feature).
Otherwise, you don't have to enter the hours worked if the commission item is set as an additional pay.

See the Add an employee who works on commission article for more information.

Just so you're aware, our QuickBooks Phone Support Team is open from Monday - Friday, 9am - 8pm ET. While our Chat Support is open from Monday - Friday 7am - 9pm ET, Saturday - Sunday 9am - 6pm ET.

If you missed them, know that you can always visit us here in the Community and post your question. We'll be around to help.

Please let me know if you have any follow-ups or other questions by leaving a comment below. I'm always ready to lend a hand. Wishing you a good one.

taile77 · ‎August 14, 2019

It works now, but it is confusing that it has to be set up this way. I now have to set an hourly wage for my client, in which he does not have a pay rate. He works strictly on commission basis plus gratuity, so I just do not see the reasoning behind having to input an hourly pay rate and hours worked.

I have had my client's payroll info set up in QBO payroll for over 2 years without problem until last month, and I have never changed it as there was never a need to change it for him nor his employees. It suddenly required hours inputted before I can process his pay, which he does not track.

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Why Commission Based Employee Require Hours Entry?