How can I pay an employee by mileage instead of hourly?

Hello there, icoburn.

Thank you for posting here in the Community. Allow me to share insights on how can you can pay an employee through mileage.

In QuickBooks Online, we can only run payroll by hourly or salary. To process this by mileage, perform it through manual tracking. 

To start, create a specific category and items to identify the mileage payments for employee. After that, issue a regular check to your employee, but not via payroll.

On top of that, you can also utilize a third-party app that can perform automatic pay to your employees via mileage.

Additionally , if you want to reimburse or refund an employee who paid for a company's vehicle expense, I've added this article to guide you: Reimburse employee's mileage and vehicle expenses in QuickBooks Online

Your input matters to us. If there's anything more you'd like to discuss or inquire about payroll, please let us know in the comments below. Take care!

This is a major issue for us as well - we pay our truck drivers per mile & have always modified the  "hourly pay" to be $.50 per hour(meaning $.50 per hour) but this week it says we can't pay a driver more than 168 hours per pay period... Why did this suddenly change without notice? 

Hello there, @defineandrea. Thanks for joining us here in the thread. Let me assist you with handling payments for your truck drivers based on their working hours.

In QuickBooks Online (QBO), you can set weekly hours for your employees and pay them based on those hours. However, it seems that some of your employees have exceeded the set weekly hours limit. In this case, you can run a payroll based on the set weekly hours pay your employees for that amount and do an unscheduled payroll for the rest of the hours.

Follow the steps below to have a guide for the unscheduled payroll.

1. In Payroll, click Employees.
2. From the dropdown, choose either Bonus only, Commission only, or Fringe benefits only.
3. Additional questions may be asked based on your selection. If applicable, provide information regarding taxes or paycheck calculations. Once done, select Continue.
4. Decide the pay period and date and select the employees you want to pay.
5. Select the column or click Actions ⋮ Edit Paycheck to enter your pay details. You can put hours, compensation, memos, or any other important paycheck information. If you use QuickBooks Time, choose Review Approved Time.
6. Click Preview Payroll and select QuickBooks bank account in tracking the payroll.
7. Choose Preview payroll details, Submit payroll, or Save for later.
8. If finished, click Close.

On the other hand, you may also visit this link as your guide to have a copy of your employee's paycheck inside QBO: Add pay history to QuickBooks Online Payroll.

Feel free to reply on the thread for more questions about managing your employee's payroll using QBO. I'm here to help you. Have a good one!