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March 28, 2022
Question

How do I put in a pay raise that starts in the middle of a pay period?

  • March 28, 2022
  • 1 reply
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An employee's hourly rate is changing from $25 to $26 on April 1, which is in the middle of a pay period. How do I run payroll?

1 reply

March 29, 2022

Hi -nwowc-org.

 

Being able to change your employees hourly rate is something that QuickBooks only makes easy by allowing you to add additional pay. I'd be happy to help you set this up in your QuickBooks Online account.

 

In order to set up an additional pay type by going to: Payroll>Employees>Select the Employee>Click the pencil Icon beside Pay> In section 4 click on the Pencil beside Additional Pay>Add an hourly 2 pay item with the new pay amount of $26/hour>Save and when you run payroll click on the customize table option and include the new pay type for that employee. Enter the hours that the employee worked for the old pay amount and then the amount of hours they worked under the new pay amount. 

 

So for example if it's a 40 hour pay period and the employee worked 30 hours under $25 an hour you put 30 hours in the $25 section and then 10 hours in the $26 an hour section.

 

After this is done you can turn off the additional pay type and just change the employees pay to $26 an hour for future payrolls.

 

If you have any questions let us know and we'd be happy to help.