Regardless of how you have set up your employee defaults, you can
customize the wage and salary information for each employee. QuickBooks then
prefills the information when you write a paycheck for the employee.
Have you set up payroll items?
Click Employee Center.
Click the Employees tab, if necessary.
If the employee is already on the list, double-click the employee's name.
If the employee is not yet on the list, click New Employee at the top of the list.
Click the Change tabs drop-down arrow and click Payroll and Compensation Info.
Go to step 5 if you're setting up an hourly employee or go to step 6 if you're setting up a salaried employee.
(Hourly employees only) In the Earnings section of the Payroll Info tab,
enter an hourly wage payroll item for each type of hourly wage the employee
Regular wages: Click the name of the payroll item that represents the
employee's hourly wage from the Name drop-down list, and enter the
employee's hourly rate in the Hourly/Annual Rate column.
Overtime wages: If the employee regularly receives overtime, enter an
overtime payroll item here. Since the overtime payroll item is a multiplier,
QuickBooks populates the payroll item's rate automatically, based on the
regular hourly rate directly above it.
Important: Overtime payroll items must follow the payroll item for
the hourly rate on which they are based; otherwise, the overtime rate will not
(Salaried employees only) In the Earnings section, enter a salary payroll
item for the employee.
Click the name of the payroll item from the Name drop-down list and enter
the employee's annual salary in the Hourly/Annual Rate column.
How QuickBooks calculates salary
Enter benefits and other adjustments
Enter federal tax information (individual employees)
Enter miscellaneous state or local tax information (individual employees)
Enter sick and vacation time information (individual employees)
Enter state tax information (individual employees)
Enter wage and salary information (individual employees)