Payroll for a Canadian employee in USD

Hi there @annakim9630,

It sounds like you're working hard to manage employees all around the world. I'm glad you've chosen QuickBooks to help make doing the books a little easier, and to simplify the Payroll process. While this situation is a little complex, I have an idea that I think will do the trick.

Since your main priority is ensuring that the employee's salary is entered correctly according to the variations each pay run, I want to give you some steps to do that. It may seem a little tricky, but it's a way to get the job done. Essentially, you'll be manually adjusting the employee's salary to reflect the amount you're actually paying, before each pay run. Here's how:

1. Navigate to the Payroll menu, then the Employees tab.
2. Locate and select the Employee that's paid in USD.
3. Use the Edit pencil to make changes to the Pay section.
4. Locate Question #4. How much do you pay Employee? and use the Edit pencil to make adjustments.
5. Here's where some math comes in. Depending on your pay schedule, you'll have to figure out how much your employee's salary would be based on each pay run. For example, if you pay bi-weekly, you'll have to divide the pay by 2 to get a weekly rate, then multiply that by the number of weeks in the year - 52. Enter that new salary in the appropriate field. 
6. Hit Done twice when you're finished.

When you run payroll, you'll see that the employee's salary reflects the amount you're actually paying based on the conversion rates. In order to keep this accurate, you'll have to make the same adjustments each week in the employee's profile. 

There isn't another way to work around this, so if you'd like the capability to run payroll in a foreign currency, or if you have other ideas for how the payroll module could be improved, submit feedback. To do this, navigate to the Gear icon then choose Feedback. Your voice will be heard by our product development team, who'll take the suggestions into consideration when implementing new features and upgrades. You can keep tabs on product updates by checking out the New Features page of our website.

If you have questions or concerns, don't hesitate to reach out. I'm here to assist you with tasks like these. Take care!

Hi @Rebecca R 

Thank you for your answer! It has been very helpful to run my first payroll for the employees who get paid in USD.

While I process the first payroll, I noticed something that

 1. I have USD chequing account to transfer US dollar to pay the employee but QBO only allows to make payroll payments from CAD account(our home currency). Is there workaround for this transaction? Should I make J/E for this?

 2. As you suggested, I need to change the salary amount every time I run the payroll according to the currency rate at the time. How are the Vacation hours and $amount calculated? As you can see the photo attachment, I can understand the amount $326.26 of vacation amount as it is calculated 8%of vacationable earning but I don't know how QBO calculates 6.15 hours as the vacation hours?

Thank you for your help as always!

Here is the attachment.

Hi annakim2020. Congrats on running your first payroll for the staff that gets paid in USD. To answer your first question, I'd recommend consulting an accounting professional for expert advice as this helps prevent discrepancies in your books.  You can reach out to an accounting professional on our site using this link here. If you decide to use journal entries, feel free to check out this article which guides you on how to do that. I appreciate you sending the screenshot for visual reference. At this time, there are four different ways to calculate vacation in QuickBooks. Depending on the way you've set up your vacation, I'd recommend referencing this article which goes more in-depth on the different types of vacation policies and how their accruals work. Feel free to reach out if you have questions while going through the article. 

I'm here to help steer you in the right direction.