The choices on this window allow you to create a payroll item that will be
calculated by a quantity entered or by a sum total of hours from an earnings
Choose "Calculate this item based on quantity" to have the payroll
item calculated from a quantity you enter on a paycheck.
Choose "Calculate this item based on hours" to have the payroll
item calculated from the total of Regular and Overtime hours worked. You may
also choose to include Sick and Vacation hours in the calculation. Leave this
box unchecked to exclude all Sick and Vacation hours.
Choose "Neither" if you do not want the payroll item to be based
on a quantity you enter or on a sum total of hours.