Thanks for reaching out, Mandy.
To begin, please ensure your QuickBooks is updated to the latest release and has the most recent tax tables to stay compliant. Also, when you first run your payroll or access your payroll setup, a setup wizard will guide you through adding the Qualified Overtime Tracking payroll item.
If the wizard doesn’t appear, you’ll need to add the tracking item manually. Follow these steps to do so:
- Navigate to the Lists menu and select Payroll Item List.
- Click Payroll Item and choose New.
- Select Custom Setup, then click Next.
- Choose Other Earnings as the item type, then click Next.
- Give the item a name, such as “Qualified Overtime Tracking,” to differentiate it from regular overtime.
- Assign the appropriate expense and liability accounts used for payroll tracking.
- Click Finish to save the item.
Once the payroll item is created, assign it to employees eligible for Qualified Overtime Compensation by following these steps:
- Go to Employees, then open the Employee Center.
- Double-click an employee’s name to edit their profile.
- Open the Payroll Info tab.
- Under Additional Earnings, add the new payroll item.
- Click OK to save your changes.
For further details, please refer to the article: Set up and manage company contributions.
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