What's an hourly employee?
An hourly employee is paid for each hour worked and is generally a non-managerial, service, retail, or part-time employee. Most hourly employees are considered non-exempt from federal labor laws, which means they receive overtime pay whenever they work more than 40 hours a week.
To set up an hourly pay type for an employee:
- Add a new hourly employee
- On the employee's Pay page, click the How much do you pay Hourly? drop-down arrow and select Hourly.
- In the Regular Pay field, type the employee's hourly pay rate.
- Click OK.
Next time you create a paycheck for the employee, the hourly pay item (Regular Pay) appears. Simply enter the number of hours worked for the pay period and our payroll service calculates the hourly wages on the paycheck.