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Level 3

Payroll Calculating Incorrectly (not taxes)

Hello. I'm experiencing a weird issue with rounding/calculating Payroll amounts. I am attempting to mirror employee paychecks from an outside payroll company to Quickbooks. The goal is to see complete job reports that show both materials purchased and employee labor cost. In order to do that, I need to record paychecks so that the job costing is split up per job. 

 

I don't get very far in this task, because my official payroll report shows different data than Quickbooks. 

 

As an example, the data below is autofilled in Quickbooks based on imported hours/jobs from TSheets integration, plus the hourly wage from the employee tab:

Job 1: $18.50 * 12.07 = $223.23

Job 2: $18.50 * 19.18 = $354.89

Janitorial: $18.50 * 2.38 = $44.09

Job 3: $18.50 * 1.25 = $23.13

Job 4: $18.50 * 3.28 = $60.74

 

However, if you go back to the first line for Job 1, $18.50 * 12.07 does not equal $223.23. It equals $223.295. How/why is QB getting $223.23? They're all wrong. This is throwing off gross pay substantially. Instead of $706.15 I am seeing $706.08 in Quickbooks. Technically I can adjust these amounts but... why are they all wrong?

 

Thanks!

 

(Side note: taxes are calculating incorrectly because there is a difference in rounding/decimal places between QB and my payroll company apparently. I have to manually adjust taxes because of it. Any workaround that doesn't require modifying taxes every week for 13 employees?)

 

8 Comments
QuickBooks Team

Re: Payroll Calculating Incorrectly (not taxes)

I thank you for the complete details about your concern, @Ashley65.

 

When using your TSheets in running payroll in QuickBooks Desktop, you need to make sure the two programs are in sync. Let me provide information on how to do it.

 

First, let's activate the integration of TSheets and QuickBooks. Then, let's ensure to map the same payroll item in both TSheets and QuickBooks. Lastly, associate your employee’s time records to specific Customers/Jobs, Service Items, Billable yes/no, or Class. By doing so, you can ensure that your employee's time is tracked and included in your job and profitability reports.

 

To ensure your TSheets data will be imported to QuickBooks Desktop, you need to activate the integration.

 

Here’s how:

  1. Go to the Employees menu.
  2. Choose Enter Time.
  3. Select Activate Tsheets.
  4. Once completed, sign in to your Tsheets account.

Now, you can sync your TSheets information.

  1. Click the Employees menu.
  2. Choose Enter Time.
  3. Select Sync Tsheets.

A sync is performed and will update or add any new information from QuickBooks into TSheets, and send Approved timesheets from TSheets to QuickBooks. For more detailed steps, you can check this article: TSheets Integration with QuickBooks Desktop for Windows.

 

On the other hand, let's ensure your QuickBooks software and tax table is updated to the latest version.

 

To learn more about payroll calculation in QuickBooks, you can read through these articles:

Keep me posted if you have other questions. I'm always here to help.

Level 3

Re: Payroll Calculating Incorrectly (not taxes)

Hello. I appreciate your lengthy response, however I already have TSheets and QB integration set up and my main question does not involve taxes. The hours/job information inputted by Tsheets is all correct; it is an issue with Quickbooks multiplying the hours and the pay and showing the wrong result. 

 

Can you explain to me why Quickbooks is calculating basic multiplication incorrectly? Why is it showing $18.50 * 12.07 = $223.23 when it is really $223.30?

 

Please see the attached image for a detailed view. 

QuickBooks Team

Re: Payroll Calculating Incorrectly (not taxes)

I can explain how QuickBooks calculated the amount, Ashley65. It was calculated based on minutes.

 

If you try to convert 12.07 to minutes, it's going to be 12:04. When you multiply the rate (18.50) to 12:04, it will give you 223.23. The calculation is correct. 

 

Here's how it looks like:

 

 

Get back to me if you have more questions. I'd be happy to fill you in. 

Level 3

Re: Payroll Calculating Incorrectly (not taxes)

Okay, I follow you.

 

It's not calculating 12.07 times the hourly wage, it's calculating 12.[removed] times the hourly wage? Is there a way to change that? I understand that it's 'correct', but with it being two decimal points more detailed than our payroll company, nearly every number will be off. I'll have to manually change every single line.

 

Thanks

QuickBooks Team

Re: Payroll Calculating Incorrectly (not taxes)

I can share a workaround, Ashley65.

 

I've to replicate this on my end and it's giving me the correct calculation. Let's try to toggle the time format when creating the paycheck to resolve this. You can follow these steps:

  1. Create the paycheck in decimal format (12.07). If it shows 223.23, let's click on Save and close.
  2. Go to Edit menu and select Preferences.
  3. From the General, select Company Preferences.
  4. Change the Time Format to Minutes. Click OK to save.

Open the paycheck again to see if it's showing 223.30 already. If it does, click Save and close again, then change the time format back to Decimal. You're now good to process the payroll.

 

Let's revert it if it's still showing as 223.23 after changing the time format. Right-click on the employee's name and select Revert Paycheck. Then, recreate the paycheck to see if it's already calculating correctly.

revert.PNG

 

Hope this trick works for you. I'll be right here if you need anything else.

Anonymous
Not applicable

Re: Payroll Calculating Incorrectly (not taxes)

@Ashley65 

RE: It's not calculating 12.07 times the hourly wage, it's calculating 12.[removed] times the hourly wage? Is there a way to change that?

 

There is not a way.  QB correctly calculates pay as the Rate * the Hours/minutes worked.

 

When you enter 12.07 hours, QB internally saves this as 12 hours and 4 minutes, the closest minute to 12.07 (which equates more exactly to 12 hours and 3.989 minutes, but QB doesn't use that amount of detail when saving time, and so saves it a 12 hours and 4 minutes and uses that for the calculation.)

 

The difference between 3.989 minutes and 4 minutes is 2.4 seconds.

The pay for 2.4 seconds at 18.50 per hour is about 7 cents.

 

So, finally:

18.5 * 12.066667 (12 hours and 4 minutes) does equal $223.23, which is correct.

 

----------------------------------

RE: This is throwing off gross pay substantially. Instead of $706.15 I am seeing $706.08 in Quickbooks.

 

7 cents is not substantial.

 

Notably, many electronic time clocks round time to the nearest 5 or 6 minute mark (back or forward, either 1/12th or 1/10th of an hour)  for the purposes of calculating pay.

 

So, if you clock in 2 minutes after the hour starts, you're paid from the hour, and if you clock in 3 minutes after, you're paid starting 5 minutes (or 6 minutes) after the hour. 

 

This is legal and rooted in the idea that when manually calculating pay, it's unreasonable to have to calculate it to the minute, much less the second - the latter being essentially what you're requesting.

Level 1

Re: Payroll Calculating Incorrectly (not taxes)

I too have the same problem and while I understand all the responses, it makes it very difficult to match numbers against all reports. Although .07 is a small difference in one paycheck is does add up over time and across multiple paychecks. I have done payroll long before computers and it is accepted practice to round and calculate time only to the second decimal place. In addition, I have gone to the time sheet that had the imported time from Tsheets and retyped the numbers so the exact decimal place should have been used to calculate the amount. It did not and the numbers remained the same. However, when I opened the paycheck detail and retyped the figures again everything calculated correctly. So why would it calculate correctly in one place and not the other?

QuickBooks Team

Re: Payroll Calculating Incorrectly (not taxes)

Good day, RuthE.

 

As discussed by my colleague, both the decimal format and the minute format will give us the same calculation. If it's showing different, you'll want to perform the steps I've shared above by toggling the time format to correct it.

 

In addition, I suggest reaching out to Tsheets' support. This is to check if they have an option to import the time with your preferred time format so you won't have to edit it in QuickBooks.

 

On your Tsheets account, clcik on the Question Mark (?) at the top and select Contact Us.

 

Feel free to post again if you need more guidance from me.

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