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    Set up an hourly wage payroll item

    Article ID: 1000515

    Overview

    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.

    Expected Outcome

    You will be able to pay an employee using the hourly item.

    Assumptions

    You have created a employee you would like to pay using the hourly wage item.

    Details

    To set up an hourly wage payroll item:

    From the QuickBooks menu at the top, click Lists > Payroll Item List.

    Click the Payroll Item button at the lower left corner, and choose New.

    Select Custom Setup, and click Next.

    Select Wage, and click Next.

    Select Hourly Wage.

    Select the appropriate pay type.
    Note
    : For holiday pay or other types not specifically listed, choose Regular Pay.

    Click Next.

    Enter a name for the pay item (if you have various types of regular pay, you can differentiate them with the name), and click Next.

    Choose the Expense account where you want to track wages.

    Click Finish.

    To add the new payroll item automatically when you create paychecks:

    Go to Employees on the top menu bar.

    Select Employee Center.

    Double-click on the employees name.

    From the Change tabs drop-down list, select Payroll and Compensation Info.
    In QuickBooks 2013: click the Payroll Info tab.

    Click on the blank area, in the Earnings box, below Item Name column.

    Click the drop-down arrow and 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, click OK > OK.

    5 comments

    Duane2/4/2013

    If I set up Holiday pay under compensation, my workers compensation calculation counts this as hours worked, which I don't want it to. If I set up Holiday pay under paid tiime off, it counts these hours toward vacation used, which I don't want it to.

    Answers?

    Reply

    Jo Ann2/5/2013

    02

    Hi Duane,

    I am an Intuit Employee and saw your comment. It sounds like your Workers Compensation may be set up incorrectly. I found an article that might work better for you called "Set up or edit Workers Compensation http://payroll.intuit.com/support/kb/1000753.html. I hope this helps. Thank you for posting this comment.

    Michael2/23/2013

    I own a cafe and have 3 different pay rates for the employees as well as age rates.

    Rates are Monday to friday, Saturday and Sunday and Public holiday.

    Under 16 years of age is 50% full time wage

    16-17 is 60% rate

    17-18 is 70%

    18-19 is 80%

    19-20 is 90%

    20+ is 100%

    How do i set this up in Quickbooks plus 2012/2013?

    Reply

    Violet2/26/2013

    Hi Michael,

    I am an Intuit employee and I saw your comment. Using the example you have provided, my recommendation is to create 3 different hourly items and leave the rate blank. If the rate varies for each employee, you can set up the item in the employee profile to assign the rate specific to that employee. You will need to convert the percentage into dollar amount and use that as the rate. The instruction on how to add the item in the employee profile is in the article.

    I hope this helps and thank you for posting your comment.

    Roger Daniel4/23/2013

    One of the issues we have is that on our payroll payslips it shows what the hourly rates are, but we want to show the multiple of how many hours have been worked with a total being given in the final column. This shows up on te payroll as we are inputting, but we can not get this to show up on the actial payslip.

    Any advice??

    Reply

    Comments can not be added at this time.

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