How do I record two different hourly rates for the same employee in QBO?

Human Dwelling · ‎January 19, 2021

Rebecca R · ‎January 20, 2021

Hi there Human Dwelling,

We're all newbies at some point! Asking questions and seeking support in the Community is a fantastic way to learn more about QuickBooks, so you're on the right track to becoming a pro. Let me give you a hand.

You're correct, the Employee menu can be found by navigating to the Payroll tab. You can hover over the Payroll tab to select Employees, or you can click Payroll and navigate to the Employees tab from there. Some users might see Employees from their left menu rather than Payroll, but it's good that you're clarifying this to be sure you're looking in the right area.

It looks like you're not using QuickBooks Online Payroll just yet, and might just be using the Payroll tab to save Employee information for time tracking purposes. The steps that @CaitlinOG outlined above are for if you're subscribed to QBO Payroll, so what you're seeing is completely normal. Users that subscribe to QBO Payroll will have a different view of their employee list and will have different options when it comes to editing an employees information.

Since you're not using our payroll offering, you won't be able to set up more than one hourly rate for an employee. You can choose to save your employee in the system twice, using a character within their name so that you can differentiate between the two and can tell which pay rate is associated with each, but this could get complicated. For example, if Employee A has a pay rate of $10/hour and $15/hour, I would save two profiles for this employee - one called Employee A 10 and Employee A 15 so that you're able to easily differentiate between the two.

I can see that you're working with an accountant already, so it'd be a great idea to consult with them on this. They may have another suggestion, or may offer to get you set up with QBO Payroll so that you can take advantage of the steps that were outlined in the previous reply.

Since I can see how setting multiple hourly rates for one employee when you're not a QBO Payroll subscriber would be helpful, I suggest you navigate to the Gear icon, then hit Feedback. This'll allow you to send your suggestions to our product development team so that they can work on implementing them in future updates.

Let me know if you need further clarification, it's what I'm here for!

View solution in original post

CaitlinOG · ‎January 19, 2021

Hi Human Dwelling,

Welcome to the Community! It's great to see that you're using QuickBooks Online's Payroll add-on to manage all of your accounting in one place. I can explain how to add multiple hourly rates to an employee.

To set up a second hourly rate, you'll navigate to the Employees menu, then click on the employee that you want to add a second hourly rate to and select Edit Employee. From here, scroll down to the section that says How much do you pay the employee and click on the pencil icon. When the next screen appears, select Add an hourly rate and fill in the necessary information, then Save. The employee will then have two different hourly rates.

The system allows you to add up to eight different hourly rates to a single employee. You can learn more about adding hourly rates and processing paycheques with more than one rate of pay for an employee in this article: Pay multiple hourly rates

Please don't hesitate to reach out if you have any other questions!

Human Dwelling · ‎January 20, 2021

Thank you for the reply, CaitlinOG.

I did find this response elsewhere here in the community. I am going to sound like a complete newbie but where are you finding the Employee menu? When I login there is no Employee menu; the only way I have found to get to the employee to edit is by navigating to Payroll. Additionally, when I select Edit Employee there is no How much do you pay the employee. I have attached two photos for reference.

Dashboard Screenshot.jpg

Rebecca R · ‎January 20, 2021

Hi there Human Dwelling,

We're all newbies at some point! Asking questions and seeking support in the Community is a fantastic way to learn more about QuickBooks, so you're on the right track to becoming a pro. Let me give you a hand.

You're correct, the Employee menu can be found by navigating to the Payroll tab. You can hover over the Payroll tab to select Employees, or you can click Payroll and navigate to the Employees tab from there. Some users might see Employees from their left menu rather than Payroll, but it's good that you're clarifying this to be sure you're looking in the right area.

It looks like you're not using QuickBooks Online Payroll just yet, and might just be using the Payroll tab to save Employee information for time tracking purposes. The steps that @CaitlinOG outlined above are for if you're subscribed to QBO Payroll, so what you're seeing is completely normal. Users that subscribe to QBO Payroll will have a different view of their employee list and will have different options when it comes to editing an employees information.

Since you're not using our payroll offering, you won't be able to set up more than one hourly rate for an employee. You can choose to save your employee in the system twice, using a character within their name so that you can differentiate between the two and can tell which pay rate is associated with each, but this could get complicated. For example, if Employee A has a pay rate of $10/hour and $15/hour, I would save two profiles for this employee - one called Employee A 10 and Employee A 15 so that you're able to easily differentiate between the two.

I can see that you're working with an accountant already, so it'd be a great idea to consult with them on this. They may have another suggestion, or may offer to get you set up with QBO Payroll so that you can take advantage of the steps that were outlined in the previous reply.

Since I can see how setting multiple hourly rates for one employee when you're not a QBO Payroll subscriber would be helpful, I suggest you navigate to the Gear icon, then hit Feedback. This'll allow you to send your suggestions to our product development team so that they can work on implementing them in future updates.

Let me know if you need further clarification, it's what I'm here for!

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How do I record two different hourly rates for the same employee in QBO?