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This will create too many service items and will make things complicated.
I believe QB desktop can manage this kind of time sheet billing but it sounds like Quickbooks on line can not.
I just found a workaround. Once I approve the time I go to weekly timesheets. From here I can adjust the pay rate based on employee at the service code level. It's a bit slow and "clunky" and would expect software like QB to make it streamline like the rest of the software.