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Hello,
I have been using LOCATIONS for our different business segments. It is easy for me to separate the revenue and expenses by reclassing them to a location because our point of sale software does not assign a location. My question is, if I want to assign wages to a location, can I just make a journal entry to the account (salaries) to basically reclass it from no location to the appropriate location without it causing any payroll issues with W2s or tax deposits? Thank you
Thanks for dropping by the Community. I'm here to answer any of your concerns.
In QuickBooks Online, if your software doesn't assign a location, you might want to consider using class tracking or other features within QuickBooks Online to categorize transactions by location. Class tracking allows you to categorize transactions by different segments of your business, such as locations.
To use class tracking in QuickBooks Online:
1. Go to the Gear icon in the upper right corner.
2. Choose Account and Settings.
3. Click on the Advanced tab.
4. Turn on the "Track classes" feature in the Categories section.
5. Save the changes.
Once you've enabled class tracking, you can assign a class (which could represent a location) to each transaction, including payroll transactions.
If you still prefer to use journal entries, you can do so. Still, you should be cautious and consult with a financial professional or QuickBooks expert to help you with the process of creating JEs.
It's always a good idea to consult with an accountant or bookkeeper familiar with your specific business needs and the payroll regulations in your jurisdiction to ensure compliance. Making direct journal entries for payroll can have significant implications, so it's crucial to proceed carefully and get professional advice if needed.
Feel free to post here again if you have further QuickBooks-related concerns. We are available 24/7 to lend a hand with each of your queries. Stay safe!
Thank you. How do you assign a CLASS to an employee or payroll transaction? thanks
Hello efish123,
Once you've created your list of 'Classes', you'll be able to assign them to your employees. However, it's important to note that each employee must be assigned a class, or you won't be able to run payroll.
Follow these steps to assign a class to your employees;
1. Open your Settings
2. Click on the Edit
3. Select the
Note; If you use the same class for all employees, assign a class to all employees from the ▼ dropdown. If you use different classes assign a class to each employee from the ▼ dropdown menu
4. Hit Save then Done.
If you have any other questions, please don't hesitate to reach out. We would be glad to assist!
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