Allocate a portion of an employee's paycheck to two different classes?

viro1994 · ‎September 01, 2020

I use Quickbooks Desktop Pro 2020. My company has a few different classes setup within the company file to track expenses for different parts of our company. I have an employee who works for the main company but also does some work for the DBA. He wants me to classify $150 of his total paycheck to be classified as the DBA company and the rest of his paycheck to be classified as the main company. We have two classes set up (one for the DBA and one for the main company), breaking down portions of expenses to two classes works with normal transactions by splitting the transaction. Is this possible with a paycheck? I know that I can assign one class to the paycheck, but I'm not sure if further breaking it down is possible.

BigRedConsulting · ‎September 01, 2020

Yes, it's possible.

To do this, first turn on the preference.

Go to Edit | Preferences | Payroll & Employees | Company Preferences.

The two highlighted preferences determine how classes can be added to paychecks:

To split up the earnings only, select the "one class per" Earnings item option.

To also split other parts of the paycheck, select the first option. For several types of payroll items (additions, deductions, and company expense item, I think) you can then edit the payroll items from the payroll item list and select to job/class track that item:

Once the preferences are set, the paycheck earnings table will look like this:

View solution in original post

BigRedConsulting · ‎September 01, 2020

Yes, it's possible.

To do this, first turn on the preference.

Go to Edit | Preferences | Payroll & Employees | Company Preferences.

The two highlighted preferences determine how classes can be added to paychecks:

To split up the earnings only, select the "one class per" Earnings item option.

To also split other parts of the paycheck, select the first option. For several types of payroll items (additions, deductions, and company expense item, I think) you can then edit the payroll items from the payroll item list and select to job/class track that item:

Once the preferences are set, the paycheck earnings table will look like this:

viro1994 · ‎September 02, 2020

Thank you for your reply. I already process August payroll. Can I go back to August payroll and allocate this employees paycheck to be $150 to class1 and the rest to class2? Or does this setting only work going forward once it's been enabled?

viro1994 · ‎September 02, 2020

Thank you for your reply. I already processed and completed August payroll. Can I go back to August Payroll and allocate $150 to class1 and the rest of the paycheck to class2? Or does this setting only working going forward once it's been enabled?

JasroV · ‎September 02, 2020

Thanks for sharing additional details, @viro1994.

I also appreciate you for going through the steps shared by our Community Champion BigRedConsulting. And yes, you’ll want to follow the steps above as moving forward in allocating your employee's paycheck to classes.

If you wish to go back and allocate your August payroll, you’ll want to create a Journal Entry (JE) to have it classed to different classes. Let me show you how in your QuickBooks Desktop (QBDT) software.

Before doing so, I’d recommend working with your accountant on which account to use in creating a JE. This way, we can ensure that your accounts are well accounted for. Once ready, you can follow these steps:

Go to the Company menu and select Make General Journal Entries.
Fill out the fields to create your journal entry
Select Save & Close.

You can also check this article for more details: Create a journal entry in QuickBooks Desktop.

Once you’re all set, check out this link that provides the complete guidelines in filing your payroll taxes online.

Let me know if there’s anything else you need help with your payroll or with your QBDT software. I’ll be around to help you.

BigRedConsulting · ‎September 14, 2020

Yes, you can go back and do this. There is no need to enter Journals!:

- Edit each check and in the Review Paycheck area, change the items in the earnings table to suit.

- As long as the "lock net pay" checkbox remains checked, the paycheck will not recalculate taxes or wages. Nifty feature.

BigRedConsulting · ‎September 14, 2020

@JasroV

RE: If you wish to go back and allocate your August payroll, you’ll want to create a Journal Entry (JE) to have it classed to different classes. Let me show you how in your QuickBooks Desktop (QBDT) software.

There is no need to use Journals. Instead, the user can safely edit the paychecks using the feature added to paychecks to "Lock Net Pay" that was added a decade ago.

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Allocate a portion of an employee's paycheck to two different classes?