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QuickBooksHelp
Intuit

Common questions about payroll and salaried employees

Find answers to questions about salaried employees and Online Payroll.

A salaried employee receives a fixed amount of pay that doesn't depend on the actual number of hours they work. We answer frequently asked questions about salaried employees and Online Payroll.

We translate your employee's salary into an hourly rate to automatically:

  • Calculate wages payable for vacation or sick leave.
  • Adjust an employee's salary for unpaid time off. For example, if the employee starts a job in the middle of a week or takes unpaid leave.
  • Pay overtime to salaried employees at an hourly rate.

If you pay a salaried employee monthly or semi-monthly, actual standard hours worked vary from pay period to pay period even though wages do not. We display the average hours worked per pay period based on the standard work week you indicate in the employee's setup.

Online Payroll displays the average hours worked per pay period based on the standard work week indicated in the employee's setup. For example, the hours worked per month (based on a standard work week of 40 hours) are 173.33. While this might look strange, it enables us to calculate a consistent salary per period while still accounting for hour-based wage types such as paid sick and vacation time.

An 8-hour workday corresponds to 40 hours per week (8 hours per day x 5 days). It also corresponds to 2080 hours per year (40 hours per week x 52 weeks). Divide this by the number of pay periods per year to obtain the effective hours worked per pay period:

  • 2,080 24 paychecks a year (twice a month) = 86.67 hours per pay period
  • 2,080 26 paychecks a year (every other week) = 80 hours per pay period
  • 2,080 12 paychecks a year (once a month) = 173.33 hours per pay period

We no longer support hourly wage items for salaried employees. If you set up your salaried employees with hourly wage items, the hourly wage items were removed during the move to the new version of Online Payroll.

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