Can I set up a class for an employee? I want to track their wages and super along with income and expenses for a particular project.

alisoncplatt · ‎April 22, 2020

I want to set up a class called 'Summit' in QBO so that I can monitor all income and expenses relating to this project. (I know how to set up the class, so that is not an issue.) However, I also have an employee who is specifically employed to work on the Summit - can I add the 'Summit' class to that employee so that their wages and super are also listed as expenses under this class? (I also have other employees who work a % of time on this, but I am guessing I cannot allocate part of their wages to the 'Summit' class...?) Thanks! Alison

Kass_B - Product Champion · ‎April 22, 2020

Hi alisoncplatt,

You can absolutely set up the employee so their wages, super etc are listed under a class. Firstly, you need to assign a QuickBooks class to a location in payroll:

Go to the Employees tab, and select Payroll Settings.
Under the Pay Run Settings heading, select Locations.
Select the green Add button, give your Class a name, and under the QuickBooks Class dropdown select the relevant entry, then Save:

Next we need to turn on 'split by location' in your payroll Chart of Accounts:

Select Employees, then Payroll Settings.
From the Business Settings menu, select Chart of Accounts.
Click on Default Accounts to expand and tick the transaction types you want to split, then Save:

Finally, we need to apply this to the employee:

Go to the Employees tab and select their name to open their details.
From the menus on the left, select Pay Run Defaults.
Under the Primary Location menu, select your class, then scroll down and Save. In this instance, my QBO file is called 'march test' and my class is called 'April':

That's it! Now when you complete and finalise a payrun, the wages etc for this employee will split by class. These articles break down the process as well.

If you have another employee that occasionally works some time on this class, you can also manually record that in the payrun itself. Let's say that my employee May has worked 5 hours on my 'main location' and 5 on my class - I can add two earnings lines, one with the main and one with my class:

Feel free to reply if you have further questions, I'm here to help.

-Kass

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Kass_B - Product Champion · ‎April 22, 2020

Hi alisoncplatt,

You can absolutely set up the employee so their wages, super etc are listed under a class. Firstly, you need to assign a QuickBooks class to a location in payroll:

Go to the Employees tab, and select Payroll Settings.
Under the Pay Run Settings heading, select Locations.
Select the green Add button, give your Class a name, and under the QuickBooks Class dropdown select the relevant entry, then Save:

Next we need to turn on 'split by location' in your payroll Chart of Accounts:

Select Employees, then Payroll Settings.
From the Business Settings menu, select Chart of Accounts.
Click on Default Accounts to expand and tick the transaction types you want to split, then Save:

Finally, we need to apply this to the employee:

Go to the Employees tab and select their name to open their details.
From the menus on the left, select Pay Run Defaults.
Under the Primary Location menu, select your class, then scroll down and Save. In this instance, my QBO file is called 'march test' and my class is called 'April':

That's it! Now when you complete and finalise a payrun, the wages etc for this employee will split by class. These articles break down the process as well.

If you have another employee that occasionally works some time on this class, you can also manually record that in the payrun itself. Let's say that my employee May has worked 5 hours on my 'main location' and 5 on my class - I can add two earnings lines, one with the main and one with my class:

Feel free to reply if you have further questions, I'm here to help.

-Kass

alisoncplatt · ‎April 24, 2020

Thanks Kass - that's great!

I have gone through and done all the setting up as per your instructions. I have a pay run next week so hopefully I will see the relevant wages and super on my class report from then on. Will let you know if any issues!

Regards

Alison

anthony dangelo · ‎November 12, 2021

Hello,

This feature does not exist in my QBO and I have QB advanced. Please help me find this because it is driving me nuts that I cannot locate it!

Thank you

AlexV · ‎November 12, 2021

Hello anthony dangelo!

This thread is for QuickBooks Online Australia that's why the steps shared are not applicable to you. Let me show you how to set this up in the QuickBooks Online US version.

First, make sure that you turned on the Class tracking and added your class list. Follow these steps:

Go to the Gear icon and select Account and Settings.
From the Advanced tab, select the Categories section, then check the Track classes.
Choose your class preference. Select Save, then Done.

Here's how to set up your class list:

Select All Lists from the Gear icon, then Classes.
Click New and enter a class name.
Tap Save.

Once done, let's turn on the class tracking for your payroll.

Select Payroll Settings from the Gear icon.
Edit the Accounting section, then toggle the Class Tracking section.
Tap Continue, then Done.
Assign a class to your employee/s. Select Continue, then Done.

I added some links you can check. These will show you how to run reports in QuickBooks Online:

Lastly, go to https://quickbooks.intuit.com/learn-support/ so you can access the US articles and join the QuickBooks Community US. You can also simply change the flag on the upper right corner to the US.

Post again if you have other concerns. Take care!

anthony dangelo · ‎November 12, 2021

Hello,

Thank you for the information. I made the changes you suggested but I do not see any changes on my P&L. Does this not retro all wage payments to employees?

Thank you

JenoP · ‎November 12, 2021

Let's get this working to update your Profit and Loss report, Anthony.

After assigning classes to employees, scroll-down to the bottom of the page. There's a section where it's going to ask if you want to update past transactions. All you need to do is select a past date and click Update.

Here's how:

Go back to the Gear icon and select Payroll Settings.
Select Accounting and select the option to assign classes to different employees.
Click OK.
Assign classes and click OK again.
Scroll-dow to the very bottom of the page.
Select a past date when you want the changes to start. Then, click Update.
Click OK.

The update will include changes made to payroll liability and expense accounts, as well as assigning classes to past transactions.

Once done, go back to the Reports menu and open the Profit and Loss by Class report. Then, check if the data are now updated.

Live me give additional articles about class tracking for more references when using this feature:

Reach out to us again or reply to me if you still have follow-up questions. I'd be glad to jump right back and help you again.

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Can I set up a class for an employee? I want to track their wages and super along with income and expenses for a particular project.