Have questions about what to do to prepare for tax time? Ouryear-end hubwill walk you through the process. Find out how to upgrade your subscription, manage your password, view account fees, request a refund, and much more on ouraccount management page.
How do I classify a retroactive payroll payment in QBO. This is not a bonus.
I'm happy to see you're taking extra steps to make sure all your transactions are recorded accurately. Having an organized payroll history is crucial in balancing your books and taking full advantage of the powerful reporting features offered in QuickBooks Online. The best way to record this depends heavily on the specifics of this payment and how your account is set up. I'll be happy to help you determine how to approach this.
In order to provide accurate and consistent calculations, our payroll systems are designed to work with the pay schedules you've set up. If you're trying to include multiple pay periods in a single cheque, the simplest way is to run multiple payrolls with the same pay date. This'll ensure the deductions are calculated accordingly. To pay out a raise retroactively, an additional pay type with the correct tax settings can be used. You can set up an additional income type by editing the employee from your Employees tab.
The best person to help you record this accurately is your accountant. They're an incredible ally in all things payroll and can make sure this gets recorded correctly for your year-end forms. You can easily invite your accountant as a user to approach this together. To search for a pro in your area, simply head to the My Accountant tab in QuickBooks Online then click on Find a pro to help.