How to Set Up Hour Types
Hour Types are types of hours paid to employees. Examples are Regular, Overtime, Doubletime, Vacation, Holiday, Sick, Jury Duty, and Bereavement.
See Also: How To Set Up Money Types
As you set up your company in the wizard, you can customize your list of Hour Types, depending on how your company uses them, delete any that you do not use, and add an unlimited number of new ones. The Hours are listed alphabetically by description. Flip the switch to mark the type as “Frequently Used.” Frequently used Hour Types will always appear on your Payroll Worksheet when you pay your employees.
To change or add Hour Types after you have completed the wizard:
- Payroll > Settings > Payroll Settings > Hours & Money Types. You mark this type Frequently Used right from this list without editing.
To add a new Hour Type:
Click the Add New link. A set of blank fields will appear.
- Name: Create a long-word description for the hour type that appears on paychecks and in reports throughout the system. Can be up to 20 characters.
- Track Non-Worked Hours: If this hour type is used to track hours that are paid, but not worked, such as vacation, holiday, sick time, paid time off, etc., check the box. Some states have taxes that calculate based only on worked hours, and this field allows these taxes to calculate correctly.
- Track Time Off: If you want to use this hour type to track allowed, taken, and available hours balances such as vacation or sick leave, check this box. For more information, see Setting Up Time-Off Hours.
- Rate Multiplier: This is the factor multiplied by the pay rate to calculate earnings. In most cases, the factor stays at 1.0, meaning that the earnings equal the pay rate x 1.0. Examples of other factors would be 1.5 for Overtime and 2.0 for Doubletime. If you want to track unpaid hours, set the Default Rate Factor to 0.
- Frequently Used: Check the box to always show this type when you run a payroll.
- Include on Time Card: This field only appears if you have Time & Attendance. Check the box to include this hour type on employee time cards.
- Click Save or Cancel.
To edit an existing Hour Type:
- Click the Hour Type name you want to edit.
- Keep the “Active?” box checked to use this hours type on the Payroll Entry Sheet. If you uncheck this box, this hour type will not appear on the Payroll Entry Sheet, but will be available for viewing.
- Make your changes, and click either Save or Cancel.
To delete an existing Hour Type:
- An Hour Type can only be deleted if it has not yet been used in a payroll. Click the Delete trashcan icon in the row of the Hour Type. If you do not see a Delete trashcan icon in that row, this means the Hour type has been used in a payroll and cannot be deleted.
- Click either OK or cancel.
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