comp time

Hi there, @omdp. 

QBO does not offer the compensatory time feature, where overtime hours are banked to a time off code instead of being paid out at time and a half. As a workaround, you can manually set up a PTO policy to track the total hours. Essentially, when an employee works overtime, you would need to manually update their available time off balance.

Here’s how to set up a PTO policy:

1. Go to the Payroll menu.
2. Choose Employees.
3. Open the appropriate employee profile.
4. Under Time off, select Start or Edit.
5. Scroll down to the Paid time off section, then select Add new paid time off policy from the dropdown menu.
6. Complete the on-screen fields to create your policy, then hit Save.

See screenshot below for your reference. 

You can also run pull up a payroll summary report. Then, attach it as a separate PDF document summarizing the hours worked for the pay period when you distribute pay stubs. In doing this, I also encourage communicating with your salaried employees about this and ensuring they understand how their hours are being tracked and reported.

Here's an article you can open to know more about processing or running payroll in QuickBooks Online.