If you need to set up all of your payroll (compensation, benefits, employees, taxes, and payroll history), run the Payroll Setup interview.
When do you need an hourly wage payroll item?
To do this task
Go to the Lists menu and then click Payroll Item List.
Note: You must turn on Payroll preferences.
Go to the Edit menu and then click Preferences.
In the Preferences window, click Payroll & Employees in the list on the left.
Click the Company Preferences tab and then click Full Payroll.
Click the Payroll Item button and then click New.
Choose either EZ Setup (for most users) or Custom Setup (for advanced users), then click Next.
Click Compensation and then click Next.
The Payroll Setup window opens.
Click Hourly wage and overtime and then click Next.
Follow the onscreen instructions for setting up the following types of
hourly wages: Regular Pay, Overtime Pay, Sick Pay, Vacation Pay.
If you need to go back to a previous window, click Prev.
Click Finish when you're done.
Setting up common payroll items
How Overtime Pay payroll items work