How do I edit pay types in QuickBooks Online?

You can edit pay types in QuickBooks Online to ensure your payroll information is accurate and reflects your specific needs. Here's how:

Editing Existing Pay Types

1. Go to the Payroll tab: Click on "Payroll" in the left-hand menu.
2. Select "Employees": Click on the "Employees" tab.
3. Choose the employee: Select the employee whose pay type you want to edit.
4. Click "Edit": Click the "Edit" button next to the employee's name.
5. Access the Pay Type: Navigate to the "Pay Type" section within the employee's profile.
6. Select the pay type: Click on the current pay type to view and edit its details.
7. Make changes: Modify the pay type's name, description, and other relevant settings.
8. Save your changes: Click "Save" to apply the updated pay type.

Creating New Pay Types

If you need to add a new pay type, you can follow these steps:

1. Go to the Payroll tab: Click on "Payroll" in the left-hand menu.
2. Select "Employees": Click on the "Employees" tab.
3. Choose the employee: Select the employee for whom you want to create a new pay type.
4. Click "Edit": Click the "Edit" button next to the employee's name.
5. Access the Pay Type: Navigate to the "Pay Type" section within the employee's profile.
6. Add a new pay type: Click the "Add" button to create a new pay type.
7. Enter details: Provide a name, description, and any other necessary information for the new pay type.
8. Save your changes: Click "Save" to add the new pay type.

Example: Editing a Pay Type

Let's say you have an employee who receives a commission on top of their regular salary. You can create a separate pay type called "Commission" and assign it to that employee. You can then edit the "Commission" pay type to reflect the specific commission rate or calculation method.

Practical Insights

• Accuracy: Ensuring accurate pay types is crucial for proper payroll calculations and reporting.
• Clarity: Use clear and concise descriptions for each pay type to avoid confusion.
• Flexibility: QuickBooks Online provides flexibility to create custom pay types to accommodate various compensation structures.