If an employee is paid at more than one hourly rate, you can add additional pay rates and roles directly on their employee record. You can add up to 25 additional pay rates to an employee.
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Go to Payroll > Employees > Select the employe name
Click the Pay Info tab
Click Edit Pay Info
Click Add Another Pay Rate located below the primary pay rate
Enter the pay rate.
Enter the role (description) for the pay rate (Optional)
Select the department (optional--this field only shows if you have created departments for your company.
Show in Payroll. If you want this additional pay rate to always display under the employee's name when you enter payroll on Step 1, choose "Yes." If you choose "No," you can still use this rate in Payroll Step 1 when you toggle "Show all Pay Types."
Show on time cards (This will only show if you have time and attendance add-on and the employee uses a time card.)
Receives tips - Check this box if the employee customarily and regularly receives more than $30 per month in qualified tips. Qualified tips include voluntary cash or credit card tips from customers, as well as tips received through tip sharing. See the IRS for more details.
Select a Treasury Tipped Occupational Code (TTOC) from the drop down that best fits the role of the employee, otherwise select "No Applicable Code."
Starting in 2026, any selected TTOC code will be reported on the employee's Form W-2.
Use the Blended Overtime Calculation
The first time you add an additional rate for an employee, you will see a box asking if you want to use the blended overtime calculation. Most businesses should keep this box checked to comply with the Fair Labor Standards Act rules.
This setting applies for all employees and can be changed later under Settings > Hours & Money Types. For more details about blended overtime, see the help article Using Blended Overtime.