First, in your Lists Menu, check to see if you have a menu item called Payroll Item List. If you do not have this menu item, then you should follow this link to Intuit's site for instructions on how to enable manual payroll in QuickBooks. You do not need to have a actual paid payroll subscription from Intuit to enable manual payroll. Another alternative is to purchase a payroll subscription from Intuit. Either way, you'll need to enable payroll in your QuickBooks to configure the integration, regardless of whether you intend to actually run your payroll in QuickBooks.
Once you have payroll enabled, then you will see the option for Payroll Item List under your Lists Menu in QuickBooks. Open the Payroll Item List. It will look like this:
Make sure you have at least three payroll items of the Type "Hourly Wage". If you do not have three Payroll Items of the Type "Hourly Wage", you'll need to add them.
When adding Payroll Items make sure you select the checkbox for Hourly Wage and Overtime
After confirming you have a minimum of three Payroll Items of Type "Hourly Wage", then run an update of the Web Connector. You can find the Web Connector running in the system tray (aka notifications area) of the computer. Locate the icon as shown in the screenshot below and then click on it to open the Web Connector. Or you can find the Web Connector and open it via the Task Manager (use Control-Alt-Delete).
Once you have the Web Connector open, confirm the checkbox for ClockShark is checked and then press the "Update Selected" button to run an update of the Web Connector.
Once the two green progress meters both show 100%, return to the ClockShark website and go through the QuickBooks Setup Steps flow again. You should now be able to move past the Payroll Items step. If you are still having trouble after reading this article, then please contact support.