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Established Member

payroll summary by class doesn't balance to to summary totals

Payroll taxes and deductions for employees where I have allocated time to different classes are not showing on my report.  Their wages are showing allocated, but none of the deductions and company expenses are, so my Payroll summary by Class does not match my payroll summary by EE.   

I have gone into each payroll item that has the option to track by Job/Class and checked that box.  All employees salary line items are assigned to a class.  I have the button in my preferences checked to track by class.  

 

 

7 Comments
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Re: payroll summary by class doesn't balance to to summary totals

The deductions should not track by class because proper tracking is Gross Wage which includes all deductions.

 

Employer share is what you are concerned with and possibly in your payroll setup you have those items defaulting to Overhead

Established Member

Re: payroll summary by class doesn't balance to to summary totals

The deductions, even if they do not track by class,  should still show up somewhere on the payroll summary by class - even if in an unclassified column,  so that if I am using it to make a journal entry, they are included.  Otherwise, my Gross Wages do not net out to my net wages and the direct deposit entry that comes from my bank account.  

 

I do not have anything defaulting to Overhead.  All employees are assigned to a class and all payroll items are clicked to allocated by class.   

 

I recently changed my class allocation to allocated by earnings item instead of by entire paycheck, and now for anyone that has multiple classes by earnings item--their payroll taxes are not on the payroll summary by class so that Net Pay line item for that class is incorrect.   

QuickBooks Team

Re: payroll summary by class doesn't balance to to summary totals

Hi there, @mandyAOR.

 

Allow me to join the thread and help share information about tracking payroll expense by class in QuickBooks Desktop (QBDT).

 

In QBDT, you can set your preferences for tracking payroll using classes. You can assign class to an entire paycheck or to each item on the paycheck. If you've selected the Earnings Item payroll preference (you can assign one class for each earnings item on a paycheck), the Preview Paycheck window will include a Class column. You can now assign a different class to each earnings item. However, if you selected the Entire paycheck payroll preference, your payroll expenses will be prorated by class on reports.

 

For further details, you can check this article: Tracking payroll expenses by class, department, or location.

 

On the other hand, please ensure to customize your reports correctly including the report period/dates so attain the correct information. 

 

As your reference about running and customizing reports in QBDT, you can check this article: Understand reports.

 

Let me know if you have any other QuickBooks or payroll questions, I'll always be here to help you. Have a great day ahead!

Established Community Backer ***

Re: payroll summary by class doesn't balance to to summary totals

(This was originally a double post)

@mandyAOR 

 

By selecting a class for certain wages you are selecting that class for the gross wages per those hours. You do not separately assign the employee deductions. You do not separately expense those. Gross wage is exactly what it says - what goes on the W2.

 

Say an employee works 40 hours at $20/hr and you assign those hours in the payroll to 4 different classes. Each class is charged $200 gross wage. You do nothing with deductions as they were included. The ONLY portion that is not specified in the creation of a paycheck inside QBDT payroll is the employer share which amounts to 1/2 FICA and SUTA/FUTA and maybe workers comp but if you feel the need to assign workers comp by class you have that option in the setup but must predetermined which classes apply as it is not something you can change each payrun.

 

Since payroll posts as it does I am uncertain what you mean by using a journal entry for payroll. That is generally only for when you use a non intuit payroll product.

Established Member

Re: payroll summary by class doesn't balance to to summary totals

I understand how allocations work.  I understand how payroll taxes work.  However there ARE instances where our deductions hit expense items as in health insurance.   I do not run them though a liability account, they just offset our insurance expense and I reconcile that externally.  Regardless of that, the bottom line is that a Payroll Summary report, no matter which allocation type is chosen, should include ALL items in that payroll.  If it is not allocated by class, then it should show in an unclassified column.  

 

The Payroll summary, no matter which columns I use to sort the report, whether by employee, by class or by pay period, should total to the same numbers.    My Net Payroll line should equal the cash that came out of my account to tie to the direct deposit entry from my direct deposit liability.  It does NOT.  It is importnat whether or not I use an external product , but in my case I do.  I use Qbooks for Payroll only as we have industry specific software that has a terrible payroll module.  

 

 

Established Member

Re: payroll summary by class doesn't balance to to summary totals

I understand how allocations work and payroll deductions work.  However, there are instances where items DO affect expense accounts.  We don't feed our benefits through a liability account, they are just an offset to our expense account.    Also, items like mileage reimbursements, etc.  

 

Regardless of all of that, a Payroll Summary report should total to the same numbers regardless of whether I am reporting by employee, or quarter or class.    I am not customizing the report in any way, just running the standard report and changing the Show Columns option to say by Class and the totals change.  The items not assigned to a class should still be on the report in an unclassified column.   There is an issue with a Payroll Summary that does not balance to the actual net payroll dollar amount that came through my direct deposit liability account.     Not that it matters as to whether a report has integrity or not, but I only use Qbooks for payroll - so need this report for my journal entry.  We have industry specific accounting software that has a terrible payroll module.   

 

 

Moderator

Re: payroll summary by class doesn't balance to to summary totals

Thanks for the details you've given, @mandyAOR.

 

I'd like to share some clarifications about the amounts on your summary reports in QuickBooks Desktop.

 

QuickBooks records all payroll expenses and liabilities based on the actual paycheck date, regardless of the pay period dates during which the work was performed. As you already verified that you've selected the correct date range for your report, this time I'd suggest getting in touch with our Payroll Care Team. They have the necessary tools to check on your transactions securely to better isolate this matter.

 

Here are some good articles that you can check out about handling payroll reports in QuickBooks Desktop for your future reference:

Please know that I'm just a reply away if you have any other questions about this concern or with QuickBooks. I'd be pleased to help you out. Take care and have a good one.