I added overtime pay as "tax-exempt", but I didn't know I was supposed to list it under hours as well. I believe I am correct. What is the best way to fix this?

Hello there, Audrey.

I'm here to help you with fixing your added overtime pay as tax-exempt in QuickBooks Online Payroll (QBOP).

To start with, please note that overtime pay is still an hourly rate for employees based on federal and state requirements. If you need to add a non-taxable item, you can use reimbursement. However, I suggest contacting your accountant for more accurate information before doing so. 

Here's how to create a reimbursement item:

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Pay types, select Start or Edit.
4. Scroll to the Additional Pay Types section and select Reimbursement.
5. Once done, select Save.

For reference, check this article: Reimburse your employee

Alternatively, If you don't want to add a non-taxable item, you can just write a regular check for the employee. Follow the steps below:

1. Go to +New and select Check.
2. Select the dropdown button under the Payee and select the Employee.
3. Select the Bank account under the dropdown button.
4. Fill out the rest of the fields accordingly.
5. Review and then select Save and Close.

I've included an article that helps you run, print, and customize payroll reports: Run payroll reports.

Let me know if you have other questions or concerns about tax-exempt or payrolls. I'll be around to provide further assistance to you.