I am on Quickbooks Online trial. Our company pays some staff on twice a month basis but, there is only 2 options from the dropdown menu. How can I change/create a new pay schedule in payroll settings?
To create a forthnightly bases on the payroll schedule, you just need to go to Payroll Settings > Pay Schedule > Add and the frequency has 3 options for you: Weekly, Fortnightly and Monthly.
If there are changes on the schedule as you do the payrun, you can always manually chance the date range if you would like to.
Thank you for your reply. Much appreciated.
My question was about creating a totally new pay schedule which is not on the dropdown list.
I would like to create "Twice a month(bimonthly)" schedule. Twice a month is slightly different from fortnightly as twice a month payroll pays 24 times a year and fortnightly pays 26 times.
Is there anyway to create customised pay schedules?
You can set the pay schedule for fortnightly, but this doesn't dictate how often you pay your employees, or what period you pay them. This is only used to help you make sure you don't miss any days of pay.
For example, if you have a pay that is from the 1st of April (with pay schedule set to 2 weeks), you can still choose to pay from 1st to the 15th (15 days), not 1st to the 14th (14 days). The pay schedule is really just trying to make sure that you don't forget to pay someone :).
Is that helpful?
Thank you so much for your reply. Just one more question.
I am testing Quickbooks out before our business moves to it.
So, if an employee's annual salary is $24,000 ($1,000 per payroll) and the employee's payroll schedule is set to 'fortnightly'. Can I set up the payroll profile to automatically calculate the amount($1,000) to be paid correctly? i.e. 1/24th of $24,000 but not 1/26th of it
Many thanks in advance
Hi Pillee, when you create the payrun and choose the payrun period, Keypay will calculate the correct pay based on how long the pay period is. So to answer your question, yes, it will calculate correctly. Is that helpful?
I just tried to do this and it would not let me.
If I choose a different end date it just automatically adjusts the start date for the period and will not let me go outside the 14 day period... is there something that I'm missing?
The pay schedules are based off the tax tables provided by the ATO. As such, when you enter an end date it will automatically adjust the start date accordingly. However you can enter in earnings for a 15 day period (or other period) if you choose once you've created the pay run - the dates you enter for the pay run period do not restrict you from entering your preferred amount of days/hours as earnings.
Thank you for that but that doesn't work for me either, I tried to do a new pay run and then go into
Pay Run Actions - Adjust Pay Period - and that still does the same thing.
Also, can I adjust the amount of tax taken out... I usually pay extra tax in MYOB as I receive a dividend every year and don't know how much it will be until the end of the year (different company) so that I don't need to pay tax at the end of the year.
I'm using QBO
You will not be able to adjust the pay period dates themselves to reflect a different time frame. As the pay schedules are based off the ATO tax tables and they only provide for weekly, fortnightly or monthly schedules, editing the pay run ending date will always update the pay run beginning date to reflect that particular schedule and you will not be able to create a schedule that spans a different amount of days.
However, the pay period does not stop you from entering in your preferred amount of hours. When you enter the employees earnings, you can enter as few or as many as you are actually paying them. There are a number of different ways a pay category can be set up to pay an employee (hourly, daily, fixed units etc). You can enter in any number of hours/days or so on into the pay run to record the earnings - just because a pay run period may reflect eg 14 days, this does not mean that you can't then enter 15, 16 days or so on.
To address your second question, yes you can absolutely adjust the tax as needed. To do so: