Payroll Help

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How to Pay Salaried Employees in Payroll

When you enter a new payroll on Step 1: Payroll Entry, all active salaried employees will appear in the employee list.

Under the “Pay Salary” column, you will see a checkbox. The “Pay Salary” box is automatically turned on to pay the employee. The employee’s flat-dollar salary rate will be included in the payroll. To stop a salaried employee’s regular pay, uncheck the “Pay Salary” box.

If you need to pay a partial salary due to taking unpaid time off, you can do this one of two ways:

  • Option 1:  On the employee’s Pay Info screen, edit the salary employee’s pay rate to the lower dollar amount.  Run payroll, and then change the salary rate back to the original amount after payroll is run.
  • Option 2: Add a Money Type that is used for partial salary payments.  In Payroll, be sure to uncheck the “Pay Salary” box to skip paying their regular salary.  Enter the lower dollar amount in the Money Type box.

If the salaried employee is assigned an accrual rule to accrue time off, you must enter hours in order to accrue time off.  These entered hours won’t affect their pay.

In most states, it is not necessary to enter hours for a salaried employee, but you may choose to do so for tracking purposes. Some states require you to enter hours for salaried employees for tax purposes.  The pay for a salaried employee will not change depending on the hours entered.  You can, however, enter additional money to be paid in addition to or instead of their regular salary rate.

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