Adding a Flat Rate payroll item

Hello again Luvmylabs705,

I'll help you out with this. You're right that the commission option will auto-choose which box on the T4 to assign that kind of rate to. Configuring this sort of option in QuickBooks Desktop does require a workaround as it's not built into the product. I recommend confirming with an accountant or the CRA to confirm whether Commission would be the correct payroll item choice or the suggestion I have below.

What you can try is setting up the daily rate using the Wage payroll item and choosing Hourly for instance. Name it Daily Rate, choose the correct account and ROE settings and hit Finish. From there, head on over to the Employee Centre and add it to your employees by double clicking their name and then going to the Payroll Info tab. The key here is to not enter a rate after you've entered the item into the Earnings area, although you can if it's the same daily rate each time.

Now when you run payroll, you'll see that in the options when you need to enter hours. The program will require you to enter an amount of hours in order to calculate, so in this case you can put 1.

Give that a shot and see if it works for you. For more help and information about payroll items, go to the Help menu and click QuickBooks Desktop Help (or use the F1 key as a shortcut). From there, click the Help tab and then the Search button. Using keywords such as "payroll item," you'll be able to find articles about it.

Don't hesitate to ask more questions!

Create an Wage type Payroll Item following the first 5 screenshots. Add the Payroll Item to the employees' profiles, but do not assign a Yearly Salary. When you create a paycheque for an employee using the Daily Wage Item, enter the total $ being paid on this cheque in the Rate column. Enter the number of hours you wish to report for ROE purposes in the Hours column. A different $ amount and # of hrs can be entered on each paycheque. The $ are reported in Box 42 and the Hrs are reported on the ROE. See last screenshot.