When changing an employee's pay from hourly to salaried, and vice versa, there are a few steps that you should take to ensure a smooth transition:
Switching from Hourly to Salaried
The first action is to create the salary for the employee.
Go to People > Employees > Select the required employee > Edit > New monthly salary. You can see the full setup guide for Salaried employees here.
Go to Groups and Wages > Click edit on one of the groups > Set the wage to 0 and remember to choose the correct date. This step will need to be reproduced for all groups.
Switching from Salaried to Hourly
The first action is to add a wage for each of the employee's employee groups.
Go to People > Employees > Select the required employee > Edit > Groups and Wages. Remember to choose the correct date. This step will need to be reproduced for all groups.
Go to Employee details > Edit the current monthly salary and set to No allocation.