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Level 1

Allocating payroll across multiple classes

I use TSheets to import Time into QBO and run payroll using QBO Full Service Payroll (FSP). FSP only allows one class to be used per employee on each payroll run. However, there are times when the wages need to be allocated across multiple classes. Ive learned this is a limitation of QBO (I could adjust the entry in QBD). My question, what is the best way to allocate the wages across multiple classes once the payroll has been run?

Solved
Best answer 07-10-2019

Accepted Solutions
Moderator

Re: Allocating payroll across multiple classes

Thanks for sharing the complete details of your concern, brianf800.

 

Yes, you're right. While we can assign a class per wages in QuickBooks Desktop, in QuickBooks Online, we can only use one class for each employee.

 

As a workaround, you can create a journal entry to offset the payroll expense created by the paycheck and separate it to different lines. This lets you assign a class as you wish.

 

Here's an example if payroll expense is for Class 1:

  • Credit payroll expense (Class 1)
  • Debit payroll expense (Class 2)
  • Debit payroll expense (Class 3)

This way, the payroll expense appears on your class 2 and class 3. Please keep in mind that the payroll and journal entry must have the same date.

 

Since this workaround is for reporting purposes, payroll-related reports won't be affected such as Payroll Summary.

 

This is applicable when you run Profit and Loss or any Quickreport.

 

Here's an article for future reference: Set up class tracking.

 

Please ping me in the comments section if you have other questions. Enjoy your day. 

View solution in original post

2 Comments
Moderator

Re: Allocating payroll across multiple classes

Thanks for sharing the complete details of your concern, brianf800.

 

Yes, you're right. While we can assign a class per wages in QuickBooks Desktop, in QuickBooks Online, we can only use one class for each employee.

 

As a workaround, you can create a journal entry to offset the payroll expense created by the paycheck and separate it to different lines. This lets you assign a class as you wish.

 

Here's an example if payroll expense is for Class 1:

  • Credit payroll expense (Class 1)
  • Debit payroll expense (Class 2)
  • Debit payroll expense (Class 3)

This way, the payroll expense appears on your class 2 and class 3. Please keep in mind that the payroll and journal entry must have the same date.

 

Since this workaround is for reporting purposes, payroll-related reports won't be affected such as Payroll Summary.

 

This is applicable when you run Profit and Loss or any Quickreport.

 

Here's an article for future reference: Set up class tracking.

 

Please ping me in the comments section if you have other questions. Enjoy your day. 

View solution in original post

Level 1

Re: Allocating payroll across multiple classes

Precious B,

 

I have a similar situation.  We have 1 employee that is a Sales Rep and works between two locations and two classes.   As of now, his Class and Location are both A and his Wage Expense Account is Indirect Job Overhead-Sales (we use different accounts for different groups of employees).   It appears that the only way I can divide his payroll is to either make a journal entry as you have suggested or to add him again as an additional employee with a slight variation to his name and have each name assigned one of the class/locations.  This way he would appear as two separate employees and receive two paychecks.    I feel a journal entry might be easier.  

 

If I want to divide his payroll between our two classes and two locations, is the below how I would make the journal entry?

 

Debit:  Indirect Job Overhead-Sales (100% of his payroll) Class A, Location A

Credit:  Indirect Job Overhead-Sales (50% of his payroll) Class A, Location A

Credit:  Indirect Job Overhead-Sales (50% of his payroll) Class B, Location B

 

Any suggestion, would be appreciated.  Thanks!

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