You need an hourly wage payroll item for each type of hourly wage you want to list on a paycheck. For example, you may need hourly wage items for regular, overtime, sick, vacation, or holiday pay. When you set up an hourly wage item, you do not specify the pay rate. Instead, you enter the rate when you set up an employee or add the item to a payroll check. This way, you can use the same hourly wage item for many employees, even though they receive different rates of pay.
How to set up an hourly wage payroll item
- Go to Lists, then select Payroll Item List.
- Select Payroll Item, then select New.
- Select Custom Setup, then select Next.
- Select Wage, then select Next.
- Select Hourly Wage.
- Select the appropriate pay type.
- Note: For holiday pay or other types not specifically listed, choose Regular Pay.
- Select Next.
- Enter a name for the pay item (if you have various types of regular pay, you can differentiate them with the name), then select Next.
- Choose the Expense account where you want to track wages.
- Select Finish.
How to add the new payroll item automatically when you create paychecks
- Go to Employees, then select Employee Center.
- Double-click on the employees name.
- Select the Payroll Info tab.
- Click on the blank area, in the Earnings box, below Item Name column.
- Select the drop-down arrow, then select your Hourly item.
- In the Hourly/Annual Rate column, enter in the employee's hourly rate (to be applied to every pay period).
- To save your changes, select OK.