Payroll Help

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How to Set Up Custom Hour Types

In this article:

Background

Hour Types are used for paying time off to employees. Some examples are: Holiday, Sick, Jury Duty, and Bereavement. These can be customized based on your company policies.

For hours that employees work, you’ll use additional roles on employees to pay additional “roles” and pay rates. See our help article, How to Add a New Employee, to learn how to add an additional role/pay rate to an employee.

Also check out: How To Set Up Money Types 

How to Add New Hour Type

Tip: Toggle to mark the type as “Frequently Used.”  Frequently used Hour Types will always appear on your Payroll Worksheet when you pay your employees.

  1. Payroll > Settings > Payroll Settings > Hours & Money Types. 
    • Hint: You can mark this type Frequently Used right from this list without editing.
  2. Click the Add New link.
  3. Add the Name:  Create a long-word description for the hour type that appears on paychecks and in reports throughout the system. Can be up to 20 characters.
  4. Select the Rate Multiplier: This is the factor multiplied by the pay rate to calculate earnings.  In most cases, the factor stays at 1.0, meaning that the earnings equal the pay rate x 1.0.  If you want to track unpaid hours, set the Default Rate Factor to 0.
  5. Is this a non-worked hour? Click “Yes” if this hour type is used to track hours that are paid, but not worked, such as vacation, holiday, sick time, paid time off, etc.
    • Some states have taxes that calculate based only on worked hours, and this field allows these taxes to calculate correctly.
    • Otherwise, click “No,” if employees are working these hours. (Caution: we recommend using multiple pay rates instead of creating a custom hour type so overtime is calculated correctly!)
  6. Do you want to include in Manage Time off? Select “Yes” if you want to use this hour type to track allowed, taken, and available hours balances such as vacation or sick leave.  
  7. Is this hour type frequently used in payroll? Select “Yes,” if you want this hour type to automatically show on your payroll entry screen.
    • If you click “No”, it won’t show by default, but you can have the hour type show when you click the toggle to “show other hours and money” on payroll step one.
  8. Should this be included on the time card? This field only appears if you have Time & Attendance. Select “Yes” if you want this to be included on the employee time card.
  9. Click “Save.“

How to Edit or Inactivate an Existing Hour Type

  1. Payroll > Settings > Payroll Settings > Hours & Money Types.
  2. Click the Hour Type name you want to edit.
  3. Keep the “Active?” box checked to use this hours type on the Payroll Entry Sheet.
    • Uncheck this box to inactivate the hour type.
  4. Click “Save.“

How to Delete an Hour Type

An Hour Type can only be deleted if it has not yet been used in a payroll.  

  1. Payroll > Settings > Payroll Settings > Hours & Money Types.
  2. Click the “trash can icon” in the row of the Hour Type.
    • If you do not see a Delete trash can icon in that row, this means the Hour type has been used in a payroll and cannot be deleted.
    • You can inactivate the hour type instead by clicking edit and unchecking the “Active” box.
  3. Click “OK” to confirm deletion, or “cancel” to abandon the action.

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