I have employees that have 3 different pay types (rates) and work (book time) across multiple classes. What is the best way to track and record?
With tax season coming to an end, now is a great time to make sure payroll is setup to keep your books consistent. Both of our payrolls solutions equip you with powerful tools, enabling you to easily organize your books and unlock powerful reporting. I'll be happy to help you set this up.
QuickBooks Online Standard Payroll lets you select up to one class per employee, and one account per income type. If you need multiple classes for a single employee, a journal entry can be used to reorganize the amounts after running payroll. It's just a few easy steps to setup additional pay types:
Go to Employees, then select the employee by choosing their name.
Select the edit pencil beside Pay then scroll the question 4 and select the edit pencil.
Add hourly and additional pay types as needed.
Click Done then Done.
Click on the Gear icon then select Payroll Settings.
Select Accounting beneath Preferences.
Under Wage Expense Accounts, choose how you wish to categorize your wages and specify the accounts.
Click OK when done.
Setting this up is similarly simple if you use Advanced Payroll Powered by WagePoint. Just head to your Employees tab then click Edit to assign existing pay types to your employees. Creating new ones and mapping your accounts is just a few easy steps:
Click on the Gear icon then select Advanced Payroll settings.
Select Income types to create additional pay types.
Select Chart of Accounts to map your payroll accounts.
Click Save when done.
As Advanced Payroll records pay runs as journal entries, you can easily open these to assign classes to different lines. For additional assistance recording this, your accountant is an incredible ally. They know your business well, and have the expertise to record everything accurately. 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.
Feel free to get in touch if you have any additional questions.