Employees and payroll

Hello, @customer.

I want to make sure we get this right for you. I noticed you mentioned a payroll update. Could you perhaps mean you're currently using QuickBooks Desktop (QBDT) Payroll?

For newly added employees in QuickBooks Online (QBO), the Qualified Overtime Tracking payroll item is automatically applied when Overtime Pay is enabled. If this doesn’t happen, you will need to manually add the Qualified Overtime Tracking pay type for each employee. Here’s how to do it:  

1. Click on the All Apps menu, go to Payroll, and select Employees.
2. Choose the employee you want to update.
3. Scroll down to find Additional Pay Types.
4. Click Add and select Qualified OT Tracking from the Pay Types dropdown.
5. Then, click Save.  

If you are using QuickBooks Desktop (QBDT), be sure to update it to the latest version to access this functionality. After updating, the Payroll Setup Wizard will help you add the Qualified Overtime Tracking payroll item when you first run payroll or open Payroll Setup. If the wizard doesn’t appear, follow the steps outlined in Set Up and Manage Company Contributions to create a company contribution payroll item and select the tax-tracking type Qualified Overtime Tracking.  

You can also refer to this article on how to add Qualified OT Tracking for both QBO and QBDT: Impact of the No Tax on Overtime provision to QuickBooks Payroll.

Let us know if you have further questions. We'll be right here to help you anytime.