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Anthony59
Level 2

Set fixed monthly salary for payroll

We have recently migrated from Quickbooks Dekstop payroll to Quickbooks Online Payroll advanced edition. Our employees earn the same amount of salary every month. But I have been unable to set the monthly salary as a Primary pay category if it is fixed. So in pay categories I have tried to set it to be paid annually or monthly, instead of fixed. In both cases, when I run payroll, the system will show an hourly rate of pay and the number of hours in the month. It uses the hourly rate of pay and number of hours to calculate the salary for that month. Since the number of hours differ per month, because of the day count per month, the monthly salary shown on the payslip differs too.

Question: How can I set the monthly salary to be fixed every month throughout the year? (Except when a pay rise occurs, in which case the following monthly salaries will be increased to a new fixed amount) 

Ideally I don't want the system to attempt to use hourly pay. We don't use QBO timesheets, so hourly rates are not relevant to us.

11 REPLIES 11
GraceC
QuickBooks Team

Set fixed monthly salary for payroll

Hello there, @Anthony59.

 

You can change your employee's salary set up in QuickBooks Online.

 

Here's how:

  1. Click on the Workers tab
  2. Click Employees
  3. Choose the desired employee you want to add the allowance to
  4. Next to Pay, click the Pencil 
  5. scroll down to number 4 (How much do you pay...)
  6. Click the additional pay types pencil 
  7. Next to the field, click the drop-down arrow and select per month.
  8. Enter the monthly salary of the employee.

You may want to check out about payroll reports in QuickBooks Online. Visiting the article helps you to know more about how these reports

 

Post a comment below if you have additional questions while working in QuickBooks. I’ll pop-right back in to assist further. Have a good day!

Anthony59
Level 2

Set fixed monthly salary for payroll

Hello @GraceC 

Thanks for the advice. In the version of Quickbooks that I am using, the menu options are different to the ones that you have described. (Quickbooks Advanced Payroll)  However they are similar.

I have tried to adjust the Pay Category, Employee Pay Run Defaults and Pay Rates to be monthly. But unfortunately when salary is set as a Primary Pay Category, paid monthly or annually, the system populates the payslip with hourly units and pay per hour.

Due to rounding etc. the final salary does not match the fixed monthly salary that I want to appear.

Have a nice weekend.

JessT
QuickBooks Team

Set fixed monthly salary for payroll

Hi Anthony,

 

This happens if you're using the automated pay run for your payroll, the data will be imported from the timesheet, resulting in having a non-fixed salary amount. If this is not the case, please contact our Support to check your setup.

  1. Click on Help and choose Contact Us.
  2. Enter a summary of the issue in the description field and click on Let's talk.
  3. Choose from Message an agent or Request for a callback. These options may not be available all the time, depending on the office hours in the UK,

Feel free to reach out if you have other questions in mind.

MrPlunk
Level 2

Set fixed monthly salary for payroll

Was this sorted as I have the same problem.

Just want the monthly to be a twelth of the salary, or entered fixed by me.

Surely a common thing.

 

 

katherinejoyceO
QuickBooks Team

Set fixed monthly salary for payroll

Thanks for joining this conversation, @MrPlunk. To clarify, changing the payroll frequency for PaySuite in QuickBooks Online to monthly isn't an option. 

 

If you'll need to change frequency, you can create another payroll and manually migrate the data from one payroll to the other. 

 

Check out this article for more information: Add Year to Date (YTD) information. It helps you learn about adding a new payroll to PaySuite within the tax year. 

 

If you'll need to create a pay run for that pay schedule manually, you can click the Pause button and click Save to temporarily stop the automation of a pay schedule. 

 

For future reference, read through this article: Pay schedules - Configuring automated pay runs in QuickBooks Online Advanced Payroll. It also helps you learn about stopping the automation of pay schedule. 

 

Let me know if you have other concerns. We're always delighted to assist you some more.  

 

 

MrPlunk
Level 2

Set fixed monthly salary for payroll

Hi,

 

Not sure if you got this sorted by I looked into it and :

 

Payroll Settings>Pay Schedules> Then select your month schedule

 

        Within there you will see Monthly Payment Mode-Calculate monthly hours based on an annual average.

         


@Anthony59 wrote:

We have recently migrated from Quickbooks Dekstop payroll to Quickbooks Online Payroll advanced edition. Our employees earn the same amount of salary every month. But I have been unable to set the monthly salary as a Primary pay category if it is fixed. So in pay categories I have tried to set it to be paid annually or monthly, instead of fixed. In both cases, when I run payroll, the system will show an hourly rate of pay and the number of hours in the month. It uses the hourly rate of pay and number of hours to calculate the salary for that month. Since the number of hours differ per month, because of the day count per month, the monthly salary shown on the payslip differs too.

Question: How can I set the monthly salary to be fixed every month throughout the year? (Except when a pay rise occurs, in which case the following monthly salaries will be increased to a new fixed amount) 

Ideally I don't want the system to attempt to use hourly pay. We don't use QBO timesheets, so hourly rates are not relevant to us.



Tick the box and this will do the trick

 

Andrew

Jane 2
Level 1

Set fixed monthly salary for payroll

This is driving me nuts.  I was so excited when I read the last solution and I ticked the calculate monthly hours based on annual average but it still doesn't pay 1/12 of the annual salary. It is still focusing on hours.  I just need every month to be the same.  Has anyone worked it out?  It has gone quiet since this time last year.  Nothing in the software has changed.

EmmaM
QuickBooks Team

Set fixed monthly salary for payroll

Hello Jane2, We can take a look at this and determine if there is now a way to do this. Can we confirm are you using Advanced or Standard payroll?

Jane 2
Level 1

Set fixed monthly salary for payroll

Advanced, thank you!  Looking back, there are regular amounts being paid each month but they are not 1/12 of the annual salary.  The rounding means that we are up to £20 off on each employee by the end of the year.  

GeorgiaC
QuickBooks Team

Set fixed monthly salary for payroll

Thanks for getting back to us Jane, within the payroll settings > pay schedules, is this set to run on a monthly or 4-weekly basis? Is the rounding causing the salary to be £20 under or over by the end of the year? 

Jane 2
Level 1

Set fixed monthly salary for payroll

Hi,

 

It is set to run on monthly.  It seems to then work out an hourly rate and multiply it back up for the QB calculation of hours per month but then yes, the rounding means that it doesn't come back to the annual amount when you multiply by 12.

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