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all right so this is section five of six for the QuickBook online payroll certification exam and were starting off with setting up pay types so remember I told you sessions four five and six kind of go um hand in hand so Im just picking up where I left off from section four so clients can pay their employees by the hour or by salary with the full tower set lets take a look at the pay types before running payroll so to select how to pay employees youd go to the payroll Center select the employee tab select the employee in question next to the pay section select the pencil icon scroll down to how much do you pay section and then make any adjustments hourly employees are paid a set amount for every hour they work this amount must be equal to or higher than the federal minimum wage our employees are entitled to overtime which is at least one and a half time their normal rate Beyond 40 hours in a work week unless their position meets an exemption to set up hourly pay for an employee yo