I'll handle this query about automatically calculating overtime (OT) hours in QuickBooks Desktop (QBDT), @Cotullacowboy.
You'll need to manually input OT hours as a wage item for employees. A feature to automatically track OT hours is unavailable in QBDT.
Follow these steps to set up an OT wage item in QBDT:
- Go to the Lists menu, then select Payroll Item List.
- Click Payroll Item, then hit New.
- Press Custom Setup, then select Next.
- Hit Wage, then press Next.
- Choose Hourly Wage.
- Pick the appropriate payment type.
- Enter a name for the pay item, then press Next.
- Choose the Expense account where you want to track wages.
- Tap Finish.
To add this payroll item to automatically to paychecks, follow the steps below:
- Go to the Employees menu, then select Employee Center.
- Double-click on the employee's name.
- Tap the Payroll Info tab.
- Click on the blank area, in the Earnings box, below the Item Name column.
- From the drop-down menu, select your Hourly item.
- In the Hourly/Annual Rate column, enter the employee's hourly rate.
- Press OK to save the changes.
Check out this article for additional information on this process: Set up an hourly wage payroll item.
If you have QuickBooks Time, you have the option to set up overtime tracking. Refer to this article for additional options: Configure and change advanced overtime settings in QuickBooks Time.
Let me know in the comments below if you have other questions about overtime pay in QBDT. I'll be sure to get back to you. Have a pleasant day!
