My employees would like to save their overtime to be paid at a later date. However, I need to still enter the overtime hours worked in order to bill out their time worked to the client. Is there a way to enter the hours worked in the time sheet for billing purposes but then not have those hours paid on the employees pay check and accruing instead?
Thanks for the details for what you're trying to do with the overtime pay in your QuickBooks Desktop company file. The Payroll feature has a lot of options that will allow you to get your hands dirty configure things as you need. Regarding overtime payments, however, it's a fairly simplistic and straightforward approach. With that simplicity comes limitations and in this case recording the overtime in one area while accruing it in another isn't possible.
Others in our community may have some idea to help out with this kind of situation, and I encourage them to chime in. Working together in this way, we're able to find solutions to these kinds of questions!
If you'd like to speak with someone from our team directly to discuss this scenario and ask more questions, please feel free to call our phone support team at 1-877-772-9158. Pro and Premier support is available 24 hours and Enterprise support can be reached from Monday to Friday between 9 a.m. and 8 p.m. EST.
Take care! You're welcome to stop by again if you have other questions.
Yes, it's possible. It takes a couple of extra steps, but works very well for me.
As you know, the Bank Hourly payroll item is native to QB and is what is used to accrue hours for each employee. But to accrue hrs way QB would like you to, which is to manually enter the hours in the employee's payroll record in Payroll Info - Accrual Hours is cumbersome. I use the following workaround.
The Bank Hourly Item, which when used, only records Bank time that is paid out in any given pay period, and reduces any accrual hours you may have, which are positive.
When you are pulling reports and only want to use the OT hours, you can filter the report to exclude the 'OT Bank Differential' item and only use your regular OT Hourly item and the Bank Hrs Accrued item, to get the actual number of OT hours worked.
*Note that when accruing bank time this way, the area on the Paystub which has an 'Earned' column and 'YTD Used' column, will be invalid info. Only the 'Available' column will be correct. If you choose the more cumbersome method, which is to keep track of all of the OT hours that someone wants to bank and manually enter them each period into the Accrual Hrs area of the employee's PR profile, then those columns would be correct. But if you have many people to pay and track bank time for, the method above works very well and is much quicker because the pay cheque is populating entirely from the timecard, except for the one line entry you will make on the pay cheque to 'accrue' the banked OT hours.