I have employees set to receive overtime, but it's not being calculated when I run payroll. How do I make sure overtime is included?

Hi there, @useremnielsen22.

The Overtime Pay must be added to the employee's profile so OT hours are included on his paycheck. I can guide you with the detailed process.

1. Click on Payroll at the left pane, then select Employees.
2. Select the employee's name, then click on the Pay section.
3. Go to the number 3 section (How much do you pay your employee), then click on the +Add additional pay types (like overtime, sick, and vacation pay) link.
4. Choose Overtime Pay.
5. Hit Done twice.

After the setup, you can delete and recreate the paycheck with the OT hours. To delete the paycheck created:

1. Tap on the Paycheck list link from the Employees window.
2. Open the paycheck with no OT hours.
3. Select Delete or Void.

To recreate the paycheck with Overtime Pay:

1. Select Run payroll.
2. Input the employee's regular pay hours and OT hours.
3. Fill in the necessary information, then click on Preview Payroll.
4. Tap on Submit Payroll, then hit OK.

Here's an article you can open to know more about processing or running payroll in QuickBooks Online.

Moreover, you can skim through the topics from our help articles for more resources while working with QuickBooks in the future. Here's the link: Find QuickBooks help articles, Community discussions with other QuickBooks users, video tutorials, a....

If you have any other follow-up questions with payroll and overtime hours, please let me know by adding a comment below. I'm always here to help. Have a good one!

Thanks Angelyn! I already have them set up to receive overtime. I use T-sheets to record and import time. Do I have to manually account for overtime when I'm running payroll? I assumed it would separate it automatically, but it doesn't seem to be.

Thanks Angelyn! I already have them set up to receive overtime. I use T-sheets to record and import time. Do I have to manually separate overtime from regular when I run payroll? I assumed it would do that automatically, but it isn't.

Thanks for getting back to us, @useremnielsen22.

Since your using TSheets to record and import time, make sure to select the Use QuickBooks Online for payroll box in the QuickBooks Online Integration Preferences.

Once the Payroll items, imported upon the first sync, it will map automatically to the correct time types (e.g., the Overtime payroll item will be mapped to the Overtime time type). However, I'd still suggest double-check the transactions and make adjustments if needed.

To properly map your payroll items, please refer to this article: Map QuickBooks payroll items.

Know that I'll be right here to help if you have any other questions. I'll make sure you're taken care of. Have a good one!

I have an employee that sometimes works 7 days a week for us. We want to pay him overtime pay for the weekend days he works, even if he doesn't hit over 40 hours that week.  How can I set his overtime pay for just Saturday and Sundays?

Thanks !

I'm here to help set up the employee's overtime, SuperiorKC.

You can follow the steps provided by my colleague @Angelyn_T to add an overtime pay on the paycheck.

Just make sure to select the correct pay period that includes Saturdays and Sundays when you run payroll.

For next steps, you can print your pay checks, or pay your payroll taxes.

Keep me posted if there's anything else you need aside from setting overtime pay for your employees. I'll be right here to help you.

Hi,

Is there a guide for this using Quickbooks online?

We have an employee who has gone from casual to full-time, but we need to add overtime (50% and 100%) for any hours over a standard 7.6hr day.

Thanks!

Hello there, BethBaldwin. 

I have the steps for setting up and adding overtime pay for employees in QuickBooks Online.

If you need to pay an employee for extra hours worked, you can create an overtime pay item.

1. Go to Payroll, then Employees.
2. Choose your employee.
3. From Pay types, click Start or Edit.
4. In the Common pay types section, select Overtime Pay. (If applicable, select Double Overtime Pay.)
5. Select Save.

To learn more about the setup and the federal and state overtime requirements, I've included the following article: Add overtime pay to an employee.

After you set up the overtime pay item, you can follow the steps in this link to process payroll: Create and run your payroll.

Return to this thread if you have any further payroll-related questions. I'll be around if you need me.

You have to manually enter the OT hours. 

Why on earth do you have to separate the overtime out manually when running payroll? Shouldn't QBO be able to calculate anything over 40/week and put it into overtime on its own??? We use weekly timesheets and when I manually move part of the time to OT during running payroll, I get a warning that our timesheets will be out of sync and our P&L reporting has the overtime in Not Specified instead of to the correct job. Is this truly how this is supposed to work? Seems like a pretty major flaw.

I can share some information about adding overtime in your regular payroll, @mmoore25. 

Currently, the option to automatically add the overtime hours once it's beyond the regular hours of the employee for the week is currently unavailable. That would be a great addition to the current features that we have, so I’ll take note of it.

Feel free to provide comments from within the account. These are the steps:

1. Go to the Gear icon and select Feedback.
2. Provide your product suggestion.
3. Click on Next to submit feedback.

For additional details on how to provide feedback to enhance the program, see this article: How do I submit feedback?.

The time you've added in your weekly timesheet will only show in your reports like Profit and Loss once the info will be added to a sale or expense. Here's more information about adding a weekly timesheet in QuickBooks Online.

Refer to the following article for more information about setting up overtime pay and running a paycheck with overtime pay: Add overtime pay to an employee. 

From here, you can now run, print, and customize payroll reports in QuickBooks Online Payroll. 

Let me know if you need more help with running your payroll. I'm always glad to help in any way I can. Have a great rest of the day!