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Pay an employee different hourly rates

by Intuit Updated 1 week ago

Learn how to set up multiple hourly rates for your employees in QuickBooks Online Payroll and QuickBooks Desktop Payroll.

If your employee works in different job functions paid at different rates, you can set up multiple hourly rates in QuickBooks. You and your employee will see the different rates and pay on pay stubs and payroll reports to help you keep track.

Set up multiple hourly rates

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Note: Not sure which payroll service you have? Here's how to find your payroll service.

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  1. Go to Payroll, then select Employees (Take me there).
  2. Select your employee.
  3. From Pay types, select Start or Edit.
  4. Select + Another hourly rate.
  5. You can change the Pay type name if you want. Then enter the Rate per hour.
  6. Repeat steps 4-5 if you need more pay items. 
  7. When finished, select Save.

When you create paychecks, these rates will appear in the table. All you need to do is enter the hours.

The steps are the same as setting up a regular hourly rate. You can add as many hourly rates to your employee as you need. 

Step 1: Set up additional hourly pay items

  1. Go to Lists, then select Payroll Item List.
  2. Select Payroll Item, then select New.
  3. Select Custom Setup, then select Next.
  4. Select Wage, then select Next.
  5. Select Hourly Wage.
  6. Select Regular Pay.
  7. Select Next.
  8. Enter a name for the pay item, then select Next.
  9. Choose the Expense account where you want to track wages.
  10. Select Finish.
  11. Repeat steps 2-10 for any additional hourly rates you need. 

Step 2: Add the hourly item(s) to your employee profile

  1. Select Employees, then Employee Center.
  2. Select your employee.
  3. Select Payroll Info.
  4. From Earnings add the new hourly item(s) below the regular hourly rate.
  5. Enter the hourly rates.
  6. Select OK.

When you create paychecks, these rates will appear in the table. All you need to do is enter the hours.

If you need to pay overtime for these additional rates, see Calculate overtime based on two hourly rates.

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