Adding labor costs to a project in QuickBooks Online if not using QuickBooks payroll

Hello, @acarneal2.

I understand the importance of creating a payroll expense for your project without using QuickBooks Online Payroll. I'm here to guide you all the way.

Although you're not using QuickBooks Online Payroll, you can still keep track of your labor costs by setting up your chart of accounts. Follow the steps below to create new accounts in your Chart of Accounts, to track your payroll liabilities and expenses effectively. 

1. Go to Settings. 
2. Select Chart of Accounts
3. Select New.
4. In the Account Type dropdown, select Expenses.
5. Under Detail Type, choose Payroll Wage Expenses, 
6. In the Default Tax Code dropdown, select an applicable tax code.
7. Select Save and Close.
8. Create new accounts for Payroll Tax Expenses and Payroll Expenses following the same steps above.

In creating an expense transaction for your project, please keep in mind to choose the correct account under the Category menu in the expense sheet. 

In case you haven't created a project you may read this article for a detailed information on how to create and use projects in QuickBooks Online: Create and manage projects in QuickBooks Online.

I'll provide a helpful article for future reference:  Track income, costs, and profitability by project.

If you have any questions regarding Projects in QBO, feel free to leave a comment. Take care!

Hi,

We have already set up payroll expense in the chart of accounts, but we have a lot of employees and a lot of projects to track.  Too cumbersome to do a journal entry.  I have attached a screenshot of what I am trying to do.  We are running QB Plus and I have the project set up in QB as projects, but not sure why I don't see this functionality.  Thank you!

We appreciate the screenshot you sent, @acarneal2. This will greatly help us in identifying the feature you want to access.

I'm here to help you utilize the project feature of QuickBooks Online (QBO).

To use projects, you'll need to turn on the feature in settings first by following these steps:

1. Go to the Gear icon, then select Account and settings.
2. Choose Advance.
3. Click on Projects, then tick the button to turn it on.
4. Select Save.

After doing this, the Projects function will show on the MENU.

You can check this link on how to set up and manage projects in QuickBooks Online Plus, Advanced, and Accountant: Create and manage projects in QuickBooks Online.

Additionally, (QBO) does offer the ability to assign projects to time entries created within the program, it's important to note that this may not extend to imported entries from third-party applications, like ClickTime. 

QBO relies on the data provided by ClickTime, and this service may be limited in this scenario. However, we can certainly open the imported time entries and see if there's an option to assign a project to it. If it's restricted, this means that projects may not be supported for the imported time entries. You may reach out to ClickTime so their representative can further check this and provide you with alternatives.

Furthermore, to track your payroll expenses, you'll need to create journal entries for paychecks you've created outside of QuickBooks. I suggest consulting your accountant if you want to explore other methods of tracking.

Here are some articles that may help you in creating budgets and journal entries in QBO:

• Create budgets in QuickBooks Online
• Create journal entries in QuickBooks Online

Feel free to comment below if you have more questions on projects and other QBO-related concerns. 

Hi,

I do have projects turned on and I can see it on the menu bar.  I also have projects set up in QBO and I have the time entries from ClickTime sitting on each project.  I just want to be able to add the hourly costs per the screenshot below.

Hello, acarneal2. 

Thank you for the screenshot you've shared with us. Based on your screenshot, since you've Project turned on and set up projects in QBO, yes, you can add an hourly cost/rate for your employee under the specific Project. I'll show you how to do it:

1. Click the Project.
2. Press under Employee hourly rate and click the pencil icon for the specific employee you want to edit.
3. Select the employee you want to add to the rate.
4. Enter the hourly rate you want to assign the employee and click Add.
5. Tap Save.

After setting the hourly rate for an employee, it will be automatically applied to all their time entries for that specific project. This means that you don't have to manually input the rate for each entry, saving you time and minimizing the risk of errors. Furthermore, you have the flexibility to edit or delete the hourly rate at any time in case there are changes in the employee's compensation or if you made a mistake in setting it up. With this feature, you can ensure that your records are accurate and up-to-date without worrying about any manual adjustments.

I'd be happy to help you with project tracking! If you're interested, I can share a guide that contains detailed information and steps on how to use projects to track income and costs. 

Additionally, you can always check out our Projects FAQ. This link contains more information about other ways to deal with the project feature in QuickBooks Online:

Let me know if you have additional questions about adding an hourly cost rate in QuickBooks. I'll be available to assist you further. Have a nice day!

I don't have the button for Employee Hourly Rate - that is my problem.

Hi, @acarneal2.

Let me share my insights about the Employee Hourly Rate.

In QuickBooks Online, the tab of Employee hourly rate will only appear once you subscribe to QBO payroll.

It's important to note that QBO relies on the data provided by ClickTime, which may have limitations in specific scenarios. However, we can try to open the imported time entries and check if there's an option to assign a project to it. If the option is restricted, projects may not be supported for the imported time entries. In such a case, we suggest you contact ClickTime and ask their representative to look into this matter and provide a possible alternative.

Alternatively, consider subscribing to our payroll service. This way, you'll be able to track the labor cost seamlessly.

In the future, if you want to make sure that your project is accurate, here's an article to double-check:

Create and manage projects in QuickBooks Online.

Leave us a message if you need further assistance with your project. I'm always here to help. Stay safe!

we are using QBO payroll Core ... and I don't see the calculator. do you have to have payroll premium or payroll elite to have the hourly cost calcualtor?

when i click the pencil icon next to the employee, there is NO CALCULATOR. We have QBO Plus AND we have QBO Payroll Core. The only thing that happens when you click the pencil icon is the rate becomes an editable text field that you have to manually change/edit the dollar amount in. It did not use to be this way. the calculator icon used to be there for us and now it is gone. Please help. We have called QB several times trying to get help and getting no where with this. 

when i click the pencil icon next to the employee, there is NO CALCULATOR. We have QBO Plus AND we have QBO Payroll Core. The only thing that happens when you click the pencil icon is the rate becomes an editable text field that you have to manually change/edit the dollar amount in. It did not use to be this way. the calculator icon used to be there for us and now it is gone. Please help. We have called QB several times trying to get help and getting no where with this. 

Utilizing the calculator icon within your project is important when calculating your employee's costly hour, bwinfrastructureusa.

Upon checking, accessing the calculator icon after clicking the Pencil button is unavailable. Thus, I encourage you to submit your insights to our product engineers so they can review and consider adding this feature to their next update.

Here's how:

1. Select the Gear icon, then choose Feedback.
2. Enter your comments or product suggestions.
3. Select Next to submit.

On the other hand, we can enter the overhead and worker's compensation into the total hourly cost since this won't affect your payroll. But before doing so, it's best to review the employee's information, as their rates will be determined based on the employee payroll setup.

Step 1: Review your employee's info

1. Go to the Payroll menu, then press the Employees tab.
2. Choose the name of your employee.
3. Find the Employment details section, then click Edit.
4. Locate the Cost rate field, then enter or review the corresponding amount.
5. Once done, press Save.

Step 2: Navigate to your Projects

1. Go to the Projects menu.
2. Click the See info based on dropdown, then choose Hourly Costs.
3. Press the Manage settings dropdown, then hit the Cost rate calculation.
4. Find your employee and Add or edit their cost rate.
5. Click Save.

You can track feature requests through the QuickBooks Online Feature Requests website.

Additionally, you can access this material to learn more about projects: Track hourly labor costs and profitability by project in QuickBooks Online.

You can also run a report for your project and customize it according to your preference so you can see the specific details as you pull up your report.

I'll be available to help you with projects or anything related to QuickBooks. Please feel free to reach out.