All payroll-related items can be setup directly through the employee setup. To do so, click Payroll and select Employee Payroll Setup. If you have already added the employee that needs overtime added, click on the Edit button next to their name. If not, you can add it whenever you first create that employee. Overtime is setup on the Additions page. Once on that page, look under the Optional Additions section for an item listed as “Overtime Pay”.

If the listing is there, simply check the box next to it and enter that employee’s amount in the provided box. You may also click on the Advanced button to verify that it will be listed in the appropriate W2 box, as well as other options that you may or may not need to adjust for your needs. If it is not there, click on the Add New Addition button and a new line under Optional Additions will be created. Give it a unique descriptor, select the GL Account (if different), and enter the overtime amount. Then click on the Advanced button. Change the pay type to Overtime Pay and verify the rest of the information is correct for your needs. Click on Finished and continue through the rest of the employee setup. This addition will then be available to select for any additional employees added.

When you select to create or record the payroll, there will then be another column on the second step for overtime. Enter the amount of overtime hours for the pay period and it will calculate the total amount of overtime based upon those hours entered and the amount entered in employee setup.