Qualified Overtime Tracking QuickBooks Desktop Enhanced Payroll

Although I'm not getting a good solution from QB, I setup the QOC as a company contribution adcwell, but make sure the liability and expense account are the same so it zeros out the amount on your account, since it's for tracking only 

I have multiple state OT rates, so I have employees in AZ, TX, FL, and California, when I bring time over from TSheets, the OT rate already knows from TSheets that the OT from California is based on the over 8 hour rule, and also the doubletime rule for CA.  I don't know how I am going to address the entire payroll as a whole, when only 1 state out of my 4, is going to calculate differently than the rest?  Ugh!! 

Hi there, @Donnalyng. I understand the complexity of your situation and the challenge of processing your payroll. Yet, I appreciate the detailed scenario you shared and the explanation of how OT rates worked in California. I'll be your helping hand today.

Since the OT rate for California differs from the other states where you also have employees, you can manually calculate the qualified OT and incorporate the item as well in the paycheck detail by creating a company contribution item as a tracker with the tax tracking.

This will help you address your payroll as a whole. Here's how:

1. Go to Lists, then Payroll Item List.
2. Click Payroll Item and then New.
3. Select Custom Setup, then click Next.
4. Choose Other Earnings or Addition as the type, then click Next.
5. Name the item (e.g., “Qualified Overtime Tracking”) to distinguish it from regular overtime.
6. Assign expense and liability accounts you use for payroll tracking.
7. Click Finish to save the item.

After that, assign the payroll item to employees eligible for the Qualified Overtime Compensation. 

I also recommend updating your tax table before running your 2026 payroll to make sure the rates are correct for accurate calculations.

Feel free to return here if you have additional questions. We'll help you promptly.

Where do I find the totals in a report moving forward?  Every report I run shows $0.00 for the amount even though I know I added an amount. I ran a payroll item report and all the amounts were $0.00.  The only way I can see the amount is to look at the paycheck detail. Frustrated. 

Welcome to the thread, slccaccounting.

I understand how you feel when running a payroll report and not see the totals you’re expecting, especially when you’ve added the amounts correctly. Let’s take a closer look at what’s happening and figure out a solution together.

One possible reason for this issue is that the reports in QuickBooks Desktop (QBDT) depend on the filters you’ve set. Filters such as the date range, payroll item selection, or employee selection can impact what appears in the report.

To resolve this, I recommend checking the following in your settings:

1. Verify the filters in the report, such as the date range and employee filters, to ensure they match the data you need.
2. Confirm that the appropriate payroll items are selected and included in the report.
3. Check that the paycheck dates fall within the selected date range. If any paycheck dates are outside this range, they won’t be included in the totals.

If you need further assistance, please let us know in the comments. We're here to help.

I HAVE A SOLUTION FOR THE QUALIFIED OT TRACKING LIABILITY PROBLEM!!!!!!!!! After TWO days of speaking with Quickbooks support and going through a Tier 2 support person and them downloading my file to a portable file and taking it and working with it they offered me the following which took my liability for the company for the Qualified OT Tracking off of my payroll liability "to be paid" screen.

1.  Go to the Payroll Item List to the Qualified OT Tracking (you must do this in single user mode if you are not in it)

2. Hit the next button until you get to the Agency for company paid liability screen

3.  Go down to the Liability account screen and change that from the liability TO Payroll Expense.

4. Do that for Expense account also below it.

5. Hit next through the end

6. Make sure that you have the screen retro back through the beginning of the year so it starts from the beginning of this year to account for all payroll run already

7.  Finish when completed the task and then check your liability screen in the payroll center afterwards to make sure that you have completed the task correctly.  There should not be a Qualified OT Tracking there any longer as if "to be paid" there.

I really hope this helps anyone that is struggling with this as I was.

Good luck to you all!!

Jennifer

I HAVE A SOLUTION FOR THE QUALIFIED OT TRACKING LIABILITY PROBLEM!!!!!!!!! After TWO days of speaking with Quickbooks support and going through a Tier 2 support person and them downloading my file to a portable file and taking it and working with it they offered me the following which took my liability for the company for the Qualified OT Tracking off of my payroll liability "to be paid" screen.

1.  Go to the Payroll Item List to the Qualified OT Tracking (you must do this in single user mode if you are not in it)

2. Hit the next button until you get to the Agency for company paid liability screen

3.  Go down to the Liability account screen and change that from the liability TO Payroll Expense.

4. Do that for Expense account also below it.

5. Hit next through the end

6. Make sure that you have the screen retro back through the beginning of the year so it starts from the beginning of this year to account for all payroll run already

7.  Finish when completed the task and then check your liability screen in the payroll center afterwards to make sure that you have completed the task correctly.  There should not be a Qualified OT Tracking there any longer as if "to be paid" there.

I really hope this helps anyone that is struggling with this as I was.

Good luck to you all!!

Jennifer

Thank you for your hard work.  I am still getting 0.00 on all my reports which does not give me an easy way to actually track this for the year unless I create a spreadsheet and track manually.  

Are there any solutions out there for this?  

Thanks

If I follow this method, when I look in the Payroll Expense report it shows the amount as a positive and then again as a negative amount, thereby negating the amount to zero for the 1/2 OT amount in the Payroll Expense Quick report, would that be right?  

So I have to manually put in the 1/2 OT amount and the 1/2 rate for each paycheck that has OT in order to record it to show up for the W-2? Additional manual work that I have to figure out each paycheck?  I did notice that in the Payroll Expense report if I do this it shows the amount as a positive and then again as a negative so it zero's itself out of the Payroll Expense report. Would that be correct?