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Scott2109
Level 1

Setup Overtime and Double Time rates for Union Contractors

I'm trying to get my Workers Comp Report to report OT premium and WC Wages correctly.  The problem I have is that my employees Reg wadge rate is inclusive of a vacation pay that is taxable, but then pulled out and sent to the their Union.  The vacation per my Union agreement is the same for Reg, OT, and DT.  Example: Employees wage is $20 and their vacation is $3 for a Reg wage rate on their check of $23.  QB wants to multiply by 1.5 for OT and 2.0 for DT, but their correct wage should be $33 for OT and $43 for DT.  Is there a way to set this up?  Thank you.  -Scott

1 Comment
Rasa-LilaM
QuickBooks Team

Setup Overtime and Double Time rates for Union Contractors

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:

 

  1. Go to the Lists menu at the top to select the Payroll Item List.
  2. Scroll down to the bottom of the page to click the New drop-down.
  3. Choose New to mark the radio button for Custom Setup and then hit Next.
  4. Select Wage and press the Next button to mark the Hourly Wages option.
  5. Hit Next to choose Overtime Pay and then hit Next.
  6. Type in a name for the payroll item in the field box and click Next.
  7. 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
  8. 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.

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