1. Go to the Payroll menu and choose Employees.
2. Click the employee's name.
3. Click the Pay items - earnings & deductions tab.
4. Under Earnings, click the Add earning dropdown arrow and choose Create new earning.
   
5. Set up the a new earning called RDO Paid and enter the applicable Rate and Amount. For clarification on which tax, super/kiwisaver, leave and ATO reporting category options you should select for your circumstances, check with your accounting advisor or the ATO/IRD.
   
6. Click Save. The earning is now listed for this employee.
   
7. Click Save.

When you pay the employee for an RDO

Enter the number of paid hours against RDO Paid and reduce their Normal hours by the same amount.

Here's an example for an employee paid for a 38 hour week which includes a paid RDO (30.4 normal hours plus 7.6 hours for the RDO)