Table of Contents

Setting up hourly employees

Eric Updated by Eric

Payroll System creates a Salary Income Item for all employees by default. There are two methods for creating hourly employees.

Method 1: Automatically convert salaried employees to hourly

The program helps to automate the process of converting salaried employees to hourly employees by providing a Live Payroll Setup utility. See Live Payroll Setup: Hourly employee setup.

Method 2: Create manually

Add an Hourly Income Item if it does not yet exist

  1. Double-click on an Employer. The Edit Employer/Payer Information dialog appears.
  2. Click Payroll Setup.
  3. Click Add underneath the Income Items list.
  4. From the dropdown list select Regular Pay (hourly) and answer the prompt to have all employees be subject to the income item. An overtime income item can be added in a similar manner if desired.
  5. Click Close.

Enter the hourly rate for each employee

  1. Click Payroll Data to view the Payroll Grid.
  2. Click Edit Payee Info to see the employee's information.
    After-the-Fact Payroll has one screen of data for the employee showing the name, address, and taxes to which the employee is subject. LivePayroll has two additional screens which are accessed by clicking on the appropriate tab on the left side of the information screen.
  3. Click the Rates tab to see a list of the income and deduction items for the employer.
    The user can set each employee to be subject to each of the income and deduction items. Hourly rates or annual salary can be entered for the income items. Deduction item percentage calculations and/or fixed amounts can be set for each employee also.
  4. Enter the hourly rate for each hourly employee and make sure that the hourly (Hr $) income item is checked and that the salaried (Yr $) income item is not checked.
    Be sure that the hourly income item is not checked for any salaried employees and, if desired, enter the annual salary.
    Entry of annual salary amounts is not part of the automated Live Payroll Setup and must be done manually.

How did we do?

Setting up employers and employees in LivePayroll

Setting up local withholding tax