changing an employee's pay type from hourly to salary or vice versa results in having to create a new employee record. The new paystub gross totals aren't accurate. The tax liability isn't accurate because it doesn't account for the previous employee record. You have to wait for year end to merge the employee records for the w2 reporting. However, the tax filings have to be manually adjusted because the reporting is wrong for federal and state unemployment. This results in hours more manual entry, record keeping, and information verification. It's ridiculous.