Set PTO payment rate to be the same as a different pay type

Alex Ricciardi · ‎June 14, 2022

Hello,

I have given my hourly employees a raise following some steps from this forum, which advised me to create a new pay type for the raise. That worked fine. I created a pay type called "Raise 1" and that's how I pay the employee. However, when an employee elects to use their accrued PTO hours, the PTO payments are still reflecting their first pay type (before the raise). Is there a way to make the PTO hours reflect the new "Raise 1" pay type?

Thank for your help!

Giovann_G · ‎June 16, 2022

Hello, Alex.

I'll share additional information about the Paid Time Off (PTO) works in QuickBooks Online Payroll.

You'll need to change the default Rate per hour so that the PTO payment corresponds to the new pay type's rate. I'll show you how.

Go to the Payroll menu, then select Employees.
Click the employee, then hit the Edit under Pay Types section.
In the How much do you want to pay? screen, change the Rate per hour to match with the new pay type " Raise 1" rate.
Once done, hit Save.

When your employee decides to use their PTO hours, it will now match to the new pay type rate.

I've also included this article if you need to set up or change your employee PTO policy: Set up and track time off in payroll.

If you have any additional questions or concerns about PTO or Pay types, please let us know by adding details below. We're always available to assist you.

View solution in original post

Carneil_C · ‎June 15, 2022

Thanks for sharing detailed information about your concern, @Alex Ricciardi.

I’ve got some steps that can help you out in sorting this issue by modifying your employees’ pay type.

I appreciate that you’ve tried the steps given in this forum. Since PTO payments still reflect their first pay type, we can uncheck it from the employees’ profiles. I’ll be happy to show you how:

From the left pane, go to Payroll.
Choose Employees and tap to select the employee you want to edit.
Under number 4. How much do you pay, select the pencil icon to edit.
Untick the box of the first pay type and tick the box of the current pay type (Raise 1).

Once done setting, the PTO payment rate is now the same as the payment type of that employee.

You can check this article for more details: Add or change pay types in Online Payroll.

Additionally, I've included some resources that will help you track where you're business stands in terms of payroll and employee expenses:

For future reference, visit this guide that may come in handy in setting up and tracking time off for employees: Set up and track time off in payroll.

If you have any other follow-up questions about editing employees' pay types or managing payroll in QuickBooks Online, let me know by adding a comment below. I'm always here to help. Keep safe always.

Alex Ricciardi · ‎June 16, 2022

Hi Carneil,

Thank you very much for the informative reply. I think I might be using a slightly different version of Quickbooks Online Payroll than the one you're referring to. I don't have a pencil icon but an "Edit" link, and the options under employees are not numbered. I've attached a screenshot of the options available to me in the "How much do you want to pay" screen. As you can see, only the "Raise 1" pay type is selected; however, the PTO is still defaulting to using the pay type "Hourly" at the top.

Is there a way to do what you're describing in this version of Quickbooks Online Payroll? Thanks again for your help.

Best,

Alex

Giovann_G · ‎June 16, 2022

Hello, Alex.

I'll share additional information about the Paid Time Off (PTO) works in QuickBooks Online Payroll.

You'll need to change the default Rate per hour so that the PTO payment corresponds to the new pay type's rate. I'll show you how.

Go to the Payroll menu, then select Employees.
Click the employee, then hit the Edit under Pay Types section.
In the How much do you want to pay? screen, change the Rate per hour to match with the new pay type " Raise 1" rate.
Once done, hit Save.

When your employee decides to use their PTO hours, it will now match to the new pay type rate.

I've also included this article if you need to set up or change your employee PTO policy: Set up and track time off in payroll.

If you have any additional questions or concerns about PTO or Pay types, please let us know by adding details below. We're always available to assist you.

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Set PTO payment rate to be the same as a different pay type