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Level 1

Overtime billing

I have time sheets and payroll set up to track and pay overtime.  How do I set up QB to bill overtime that has been logged by employees? 

3 Comments 3

Overtime billing

Greetings, kentklinecon.

I'd be glad to help you set up and pay your employee's overtime in QuickBooks Desktop.


You can easily set up time tracking features in QuickBooks Desktop.


Here's how:


  1. Sign in as the Admin. And be sure to be in Single-user Mode.
  2. Go to the Edit menu. Then select Preferences.
  3. In the Preferences window, select Time & Expenses.
  4. Select the Company Preferences tab.
  5. For the Do You Track Time? option, select Yes.
  6. In the First Day of Work Week drop-down list, choose the day on which you start tracking time each week. (Note: The day you choose affects all weekly timesheets. For example, if you choose Sunday, your timesheets begin with Sunday.)
  7. Select Ok.

Set up employees for time tracking:


  1. Go to the Employee Center.  Then double-click the employee's name.
  2. Select the Payroll Info tab.
  3. Select Use Time Data when Creating Paychecks. Then select OK.

Once done, make sure you select the overtime period when creating the paycheck. You can refer to this recommended article for detailed steps in creating paycheck using time data: Create paychecks based on timesheet hours.


If you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours:


  1. Go to:
  2. Choose your QuickBooks Product.
  3. Select your QuickBooks version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

Keep in touch if you need further assistance with time sheets. Have a great day!

Level 15

Overtime billing

You would be using different Service items, if you need to bill out time at different Rates. Nothing from Payroll change the Rate of the Service Item. If you set up, for instance, General Labor at $35 an hour, and you use that in the timesheet entry for a customer task tracked as Billable, the associated Payroll item on that line might be hourly, OT or even Salary. That doesn't change the Rate to charge the client; it still shows as $35. It changes the relationship of that Cost; your Cost for that Service for the Job reporting for that Job will show a higher cost and a lower profit for that service item. If you can allocate which job Owes you the OT, because it is direct and not a result of just working a longer day, then you need to set up, for instance, a "OT General Labor" and set the higher Rate than your regular Labor service charge.

Level 1

Overtime billing


I do not think you understood the question that the person asked.

She did not ask how to PAY  the individual for overtime hours, she asked how to BILL for the overtime, as in how do you get QB to insert overtime hours in an invoice at the overtime rate?  and do so AUTOMATICALLY!

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