Payroll Help

Your Payroll Software questions answered here

How to Set Up Custom Hour Types

In this article:

Background

Hour Types are types of hours paid to employees. Examples are Regular, Overtime, Doubletime, Vacation, Holiday, Sick, Jury Duty, and Bereavement.

You should only use custom hour types to pay employees for hours NOT worked, such as Paid Time Off, Holiday, Jury Duty, etc. For hours that employee work, you’ll use additional roles on employees to pay additional 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.  You mark this type Frequently Used right from this list without editing.
  2. Click the Add New link. A set of blank fields will appear.
  • 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.
  • Track Non-Worked Hours:  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., check the box. 
    • Some states have taxes that calculate based only on worked hours, and this field allows these taxes to calculate correctly.
  • Track Time Off:  If you want to use this hour type to track allowed, taken, and available hours balances such as vacation or sick leave, check this box.  For more information, see Setting Up Time-Off Hours.
  • 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.  Examples of other factors would be 1.5 for Overtime and 2.0 for Doubletime.  If you want to track unpaid hours, set the Default Rate Factor to 0.
  • Frequently Used: Check the box to always show this type when you run a payroll.
  • Include on Time Card:  This field only appears if you have Time & Attendance.  Check the box to include this hour type on employee time cards.
  • 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 Delete trashcan icon in the row of the Hour Type.
    • If you do not see a Delete trashcan 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.

Your feedback will not receive a reply. If you have a specific issue, please reach out to our support team here.