QuickBooks 2005 implemented a new kind of payroll item specifically for
The Overtime Pay payroll item is a multiplier which takes its value from an
hourly payroll item. Now, when you give someone a raise, you only have to
change their pay rate on the hourly payroll item. When you write paychecks, the
overtime payroll item absorbs the raise, because it bases its rate on the
hourly item's rate.
If you do not use the Overtime Pay payroll item and instead continue to use
the overtime pay payroll items you created in QuickBooks 2004 and before,
QuickBooks will not be able to back out your
overtime premiums from
the wages on which your workers compensation insurance premiums are based. If
QuickBooks cannot back out your wages, the workers compensation reports cannot
calculate the correct amount you owe for workers compensation insurance.