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Employee Profit Sharing

I am using Premier Contractor Edition 2018 Desktop and own a small construction company on a cash basis. I am wanting some help with Profit Sharing. Here is the scenario.

 

I estimate and job cost a project. Should my staff get the project completed under the amount that I have designated the cost to be, then they will receive that money as a profit sharing benefit. (For example, I estimate a project for $50,000, actual job cost $25,000, project is completed for $20,000, employees receive $5000). How would I set this entry up? I use Assisted Payroll, so a Payroll Item would need to be set up too. This would not be paid out until the project is complete and any punchlist items have been completed. 

 

I have seen a set up, but it was for QB Online. Thank you SO much for any help.

 

 

Joyce

Best answer 03-29-2019 05:26 PM

Accepted Solutions
QuickBooks Team

Re: Employee Profit Sharing

Hello there, @jujubean67,

 

The first thing you need to do is create an estimate for your sales rep. This helps track their job when running payroll.

 

Once the project is complete, you can convert the estimate to invoice.

 

Let me guide you through on how to accomplish this:

  1. Click Customers, then Customer Center.
  2. Select the customer you're working with.
  3. Click New Transactions, then select Estimates.
  4. Click the Formatting tab, then select Customize Data Layoutestimate.PNG
  5. Go to Header, then put a check mark on the REP section. estimate1.PNG
  6. Click OK.
  7. Under REP, select Add new, then select your customer from the drop-down. estimate2.PNG
  8. Click OK.
  9. Complete estimate details, then click Save & Close.

Once your customer has accepted your estimate, you can make an invoice out of it, then receive the payment.  invoice1.PNG

 

Once done, create a payroll item for your employee. 

 

Here's how:

  1. Go to Lists, then Payroll Item List.
  2. Right-click anywhere, then select New.
  3. Select Custom Setup, then Next.
  4. Select Wage, then Next.
  5. Select Commission, then Next.
  6. Enter the name of the commission in the Enter name for commission, then select Next.
  7. Select Payroll Expenses for your Expense Account.
  8. Select Next, then Finish.

If you need to run payroll, you can read through this article for the detailed steps: Create paychecks.   Please see the attached screenshot below for the sample paycheck. runpayroll.PNG

 

Please let me know if you have follow-up questions after following the steps above. I'm always around whenever you need help.

3 Comments
QuickBooks Team

Re: Employee Profit Sharing

Hello there, @jujubean67,

 

The first thing you need to do is create an estimate for your sales rep. This helps track their job when running payroll.

 

Once the project is complete, you can convert the estimate to invoice.

 

Let me guide you through on how to accomplish this:

  1. Click Customers, then Customer Center.
  2. Select the customer you're working with.
  3. Click New Transactions, then select Estimates.
  4. Click the Formatting tab, then select Customize Data Layoutestimate.PNG
  5. Go to Header, then put a check mark on the REP section. estimate1.PNG
  6. Click OK.
  7. Under REP, select Add new, then select your customer from the drop-down. estimate2.PNG
  8. Click OK.
  9. Complete estimate details, then click Save & Close.

Once your customer has accepted your estimate, you can make an invoice out of it, then receive the payment.  invoice1.PNG

 

Once done, create a payroll item for your employee. 

 

Here's how:

  1. Go to Lists, then Payroll Item List.
  2. Right-click anywhere, then select New.
  3. Select Custom Setup, then Next.
  4. Select Wage, then Next.
  5. Select Commission, then Next.
  6. Enter the name of the commission in the Enter name for commission, then select Next.
  7. Select Payroll Expenses for your Expense Account.
  8. Select Next, then Finish.

If you need to run payroll, you can read through this article for the detailed steps: Create paychecks.   Please see the attached screenshot below for the sample paycheck. runpayroll.PNG

 

Please let me know if you have follow-up questions after following the steps above. I'm always around whenever you need help.

Frequent Explorer *

Re: Employee Profit Sharing

Thank you SO much for the confirmation. I knew that it couldn't be that difficult. I appreciate your help. Have a blessed week.

 

Joyce

QuickBooks Team

Re: Employee Profit Sharing

Glad to hear this is working for you, jujubean67. Always remember the Community has your back if you ever need assistance again in the future. Take care.