Payroll by piece rate or commission

Great to have you here, beldauto.

Adding the piece-rate wage is currently available in the QuickBooks Desktop version. However, you can use the Other Earnings option and rename it in QuickBooks Online (QBO).

Here's how:

1. Go to Workers on the left panel and choose Employees.
2. Under How much do you pay this employee? click Add additional pay types.
3. Click Even more ways to pay this employee.
4. Mark the box for Other Earnings and tick the Pencil icon to change its name.
5. Enter a name in the field box.
6. Make sure to select the payment type so it appears when you create a paycheck.
7. Tap Done.

After adding the pay type, manually multiply the amount to the quantity. Then, enter it to the paycheck once you have the information. 

For more in-depth information about adding a custom pay type, check out this article: Other earnings.

To set up a commission as an employee's salary or additional pay, just follow the steps below:

1. Got to Workers and select Employees.
2. Choose the employee's name.
3. Select the Pencil (✎) icon next to Pay.
4. In the How much do you pay employee section, click on the Pencil (✎).
5. Check the Commission box.
6. Tick Done.

From there, you can pay the employee a commission along with their regular pay.

To learn more about this one, refer to Pay employees a commission article.

In case you want to learn more about managing your employees in QBO, visit our Employees and payroll taxes page for reference.

Keep me posted if you need a hand with running payroll reports or any QBO related. I'm glad to help. Keep safe and healthy. 

Thank you for that info but I am asking if I am able to show what I am paying them so for example:

for piece rate they get paid $25 and they produced 45 pieces = $1125 is their gross wages.

I can add an additional pay type for piece rate and the gross of $1125 for their pay check but can I add similar to hourly pay their actual hours (in this case pieces) so it shows up on their paystubs? 

@beldauto 

Consider a 3rd party sales commission app and integrate it with your QBO.

Thanks for getting back to us, @beldauto.

You can consider creating an additional hourly pay/rate. This can be done by following the steps (1 to 2) shared by my colleague above.

Then, instead of clicking the Even more ways to pay this employee, select the Add an hourly rate link instead. After that, the name (E.g. Hourly 2), and the rate per hour. Then, hit Done to complete the process.

For more information, consider checking out this article: Pay an employee different hourly rates.

Please know that I'm only a few clicks away if you have any other questions or concerns. I'll be here to help. Have a good one!

I think that may work for the piece rate by dollar!  Do you know if I can set it up with a percentage as well? 

Hello there, beldauto,

We're unable to set up a percentage rate for an employee's payroll. You'll want to manually calculate the amount and enter it on the employee's paycheck.

Just follow the steps given by my colleague above in setting up the additional pay.

I'll be around if you have other questions.

I enter the quantity of the piece then .86 is the rate to enter a percentage. There is a customer column on the payroll page for me to add the job I am paying for.

for example:

Payroll item: installer commission

rate: .86

quantity: total of the sale 1000

their pay: $860

customer job: Smith 101 Nw Jones Avenue 

Hope this helps