Welcome aboard to the Community, Scott2109.
QuickBooks uses the employee’s wage when calculating the overtime. If you’ll use $23 as the rate, the amounts for overtime pay types will not show $33 for OT and $43 for DT.
Since the regular rate includes the employee’s vacation pay, I suggest consulting a tax adviser or an accountant for further assistance. They can provide recommendations on how to properly set up the payroll items without throwing off your records.
I can help run a search to easily find one of our experts. In your browser, click on this link and then enter the city or zip code in the field box: https://quickbooks.intuit.com/find-an-accountant/.
If you want to set up the OT and DT items, check out the steps I provided below. For the overtime:
- Go to the Lists menu at the top to select the Payroll Item List.
- Scroll down to the bottom of the page to click the New drop-down.
- Choose New to mark the radio button for Custom Setup and then hit Next.
- Select Wage and press the Next button to mark the Hourly Wages option.
- Hit Next to choose Overtime Pay and then hit Next.
- Type in a name for the payroll item in the field box and click Next.
- In the Define Overtime screen, mark the radio button for the one you want to use.
*Time-and-a-half: 1.50 times the base wage
*Double-time: 2.00 times the base wage
*Custom
- Click Next and Finish.
For more information about the processes you can perform using the Payroll feature, I invite you to check out our self-help articles: Get started.
Let me know if you have any clarifications or questions. I’ll be right here to answer them for you. Have a great rest of the day.
