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Valerie2012
Level 1

Gross salary

I have just run payroll on Quickbooks Online Advanced for the second month.  The gross salaries are coming out slightly different from last month.  Why is this?  Why isn't the gross salary for each person just 1/12 of their annual salary, as we do not pay anyone by hours?  (Payroll is stating the same number of hours as last month.)

Solved
Best answer April 20, 2021

Accepted Solutions
EmmaM
QuickBooks Team

Gross salary

Helo Freckles888, We can pass this on as feedback for our advanced payroll product team to have the option of monthly as a  unit in the employee pay rates set up.If the payslip is calculating incorrectly due to the days worked on that calendar month we can investigate into it just give us a call on 08082345337.

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4 REPLIES 4
Rea_M
Moderator

Gross salary

Your employee's setup plays a big factor in calculating your payroll in QuickBooks Online Advanced Payroll, @Valerie2012. Let's double check each of your employees Pay Run Settings to check if they're set up accordingly.

 

With Advanced Payroll, the gross salary for each employee is 1/12 of their annual salary since it's equally divided per month each time you run payroll. You can verify your employee's default settings and pay rates to determine their gross salary.

  1. Go to the Employees menu.
  2. Select the salaried employee. 
  3. Click the Pay run Defaults menu under the Pay Run Settings.
  4. Review the hours worked. 
  5. Confirm the Pay Schedule.
  6. Check the Primary Location
  7. Click Save

 

Once everything is all set, you can now finalise your pay run. This way, your payroll data will be available in reports and also allows payslips for the pay run to be visible to employees from the employee portal. For the detailed steps, kindly refer to this article: Finalise a Pay Run in QuickBooks Online Advanced Payroll.

 

To effectively manage your account and employees, I'm adding this article for your reference: QuickBooks Online Advanced Payroll Hub. It contains linked articles about your payroll settings, employees, processing pay runs, payslips, and reports to name a few.

 

Please let me know if you have other concerns. I'm just around to help.

Freckles888
Level 2

Gross salary

Hi there @Rea_M 
I am having a similar issue and I don't believe that the issue is actually resolved. I have followed all the standard instructions provided on this forum. The problem with the Advanced Payroll, is there seems to be a design flaw when it comes to salaried employees who are paid a fixed salary per month, based on 40hr standard working week. In my example below using £60k per year, you have only the option for 40hr week.

In the next example from Payrun Settings -> Pay Rates, why is it that you cannot have the option to select a unit which is "monthly"?? It seems like a simple option to implement. Which mean that £60k per year = £5k per month.
But because your system uses hrly rates, as shown by the mouse pointer, it calculates hours based on 40hr week, on the number of days in that specific month. There is no consistency, each month the gross figure is slightly different.

Surely it is easier to have the option to select a unit "monthly", the total annual salary is then simply divided by 12 months. In my case I now the payslip is calculating £5000.27 instead of £5000.00 - I cannot change it anywhere in the system. This is very frustrating!

Please feel free to provide this feedback to your developers as it feels that salaried staff have been left behind in the software design making things overly complicated.

EmmaM
QuickBooks Team

Gross salary

Helo Freckles888, We can pass this on as feedback for our advanced payroll product team to have the option of monthly as a  unit in the employee pay rates set up.If the payslip is calculating incorrectly due to the days worked on that calendar month we can investigate into it just give us a call on 08082345337.

Freckles888
Level 2

Gross salary

@EmmaMThank you. I think it will be most useful for those who simply have salaried staff to have the unit option for monthly, which simply divides annual salary by 12 - no hours should be needed.  The issue that I described originally relating to simply calculation is not resolved - I will contact QB support as you suggest to help resolve the issue - although April/May is a crazy busy time for end of year payroll actions, so hopefully I can get the issue of the monthly calculations resolved from the May payroll. Thank you again.

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