How to Pay Salaried Employees in Payroll
In this article:
How to Pay Employees with a Salary
- Go to Payroll > Run a New Payroll.
- On payroll Step 1: Payroll Entry, all active salaried employees will appear in the employee list.
- Under the “Pay Salary” column, each salaried employee will have a checkbox.
- This checkbox is automatically selected, meaning the employee’s full flat-dollar salary will be included in payroll.
- To exclude a salaried employee from receiving their regular pay, simply uncheck the box.
- Add Hours
- If your state requires payroll hours for reporting or if you have set up time off accrual rules, hours will be mandatory.
- 💡 Salaried employee pay does not change based on the hours entered.
- Add extra pay as needed (e.g., bonuses or additional earnings) in addition to their regular salary.
- Use the “Off Cycle Payroll” in the Pay Schedule drop down to pay salaried employees ONLY a bonus or payroll that is not in the normal payroll run. See our help article, “How to Run an Off-cycle Payroll,” for more info.
Paying a Partial Salary
If an employee took unpaid time off and should receive a reduced salary, you have two options:
Option 1: Temporarily Adjust the Salary Rate
- Go to the employee’s Pay Info tab. Payroll > Employee list > {select the employee name} > Pay Info.
- Edit their salary to reflect the lower amount.
- Run payroll.
- After payroll is complete, change the salary back to the original amount.
Option 2: Use a Custom Money Type
- Create a new Money Type specifically for partial salary payments. Settings > Payroll > Hours and Money Types.
- Click +Add New
- Name your money type something that will allow you and the employee to easily identify it, ex: “Partial Salary.”
- In payroll:
- Uncheck the “Pay Salary” box to prevent full salary payment.
- Enter the partial salary amount in the custom Money Type field.
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