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Level 2

calculation biweekly payroll after a temporary reduction

Hi all - simple question i hope

 

I reduced our company payroll by 30% per person for 5 pay periods. I have now returned everyone to their previous salaries.  We are in position now to add back the lost wages.  I thought when i returned everyone to their previous rate - QB would re- calculate their bi weekly gross, to add back the funds over the remaining pay periods in the year - but after running two payrolls it doesn't seem to be doing that.  So my question is  - if some one use to make 10,000 per year.. and they took a reduction of 2000, do i now have to update their gross payroll to 12,000 to make up the difference.? thanks in advance

 

(I use QB assisted payroll )

 

Solved
Best answer July 07, 2020

Best Answers
Highlighted
QuickBooks Team

calculation biweekly payroll after a temporary reduction

Glad to have you in the Community, Chris Torella.


We’ll have to create an Addition payroll item instead of updating the gross amount. This is to note that you're adding back the lost wages after reducing them on previous payrolls.


I’ll be right here to walk you through the step by step process. Here’s how:

 

  1. Go to the Lists menu at the top to select the Payroll Item List.
  2. This will take you to another page where you can enter the payroll item.
  3. Scroll down to the bottom of the page and click the Payroll Item drop-down to choose New.
    addition qbdt pr.png
  4. In the Add new payroll item window, mark the radio button for Custom Setup and hit Next to proceed.
  5. Choose Addition (Employee Loan, Mileage Reimbursement) and press the Next button.
    addition qbdt pr.1.png
  6. In the Enter name for addition, field type a term that will easily identify the pay type.
  7. From the Enter the account for tracking this expense drop-down, pick the appropriate expense and then click Next to continue.
  8. In the Tax Tracking type drop-down, select Compensation as this type is associated with addition items.
  9. Press Next and follow the on-screen instructions to complete the process.

After setting up the pay type, add the item to the employee's record one at a time. Check out these steps to associate the pay type.

 

  1. Tap the Employees menu at the top bar to select the Employee Center.
  2. Double-click the employee's name to view more details.
  3. Go to the Payroll Info tab and scroll down to the Additions, Deductions, and Company Contributions section to enter the newly added payroll item.
    addition qbdt pr.3.png
  4. Click OK to save the changes.

When creating paychecks, the addition item will appear in the Other Payroll Items area of the Preview Paycheck screen. If the item is based on quantity, be sure to enter the appropriate amount in the Quantity column.

 

For more information about setting up payroll items, we have built-in articles that you can access within QuickBooks. I can help show the steps on how to view them.

 

  1. Hit the Help button at the top to select QuickBooks Desktop Help.
  2. In the Have a Question window, type in payroll item, or a keyword in the field box.
  3. This action will display all related articles about the topic.
  4. From there, click the Add payroll items link to view all pay types you can enter in QuickBooks.
    addition qbdt pr.4.png
  5. Hit the Addition link to see the complete instructions.

If there’s anything else I can help you with, click the Reply button and post a comment. I’ll be right here to assist further. Enjoy the rest of the day.

View solution in original post

2 Comments
Highlighted
QuickBooks Team

calculation biweekly payroll after a temporary reduction

Glad to have you in the Community, Chris Torella.


We’ll have to create an Addition payroll item instead of updating the gross amount. This is to note that you're adding back the lost wages after reducing them on previous payrolls.


I’ll be right here to walk you through the step by step process. Here’s how:

 

  1. Go to the Lists menu at the top to select the Payroll Item List.
  2. This will take you to another page where you can enter the payroll item.
  3. Scroll down to the bottom of the page and click the Payroll Item drop-down to choose New.
    addition qbdt pr.png
  4. In the Add new payroll item window, mark the radio button for Custom Setup and hit Next to proceed.
  5. Choose Addition (Employee Loan, Mileage Reimbursement) and press the Next button.
    addition qbdt pr.1.png
  6. In the Enter name for addition, field type a term that will easily identify the pay type.
  7. From the Enter the account for tracking this expense drop-down, pick the appropriate expense and then click Next to continue.
  8. In the Tax Tracking type drop-down, select Compensation as this type is associated with addition items.
  9. Press Next and follow the on-screen instructions to complete the process.

After setting up the pay type, add the item to the employee's record one at a time. Check out these steps to associate the pay type.

 

  1. Tap the Employees menu at the top bar to select the Employee Center.
  2. Double-click the employee's name to view more details.
  3. Go to the Payroll Info tab and scroll down to the Additions, Deductions, and Company Contributions section to enter the newly added payroll item.
    addition qbdt pr.3.png
  4. Click OK to save the changes.

When creating paychecks, the addition item will appear in the Other Payroll Items area of the Preview Paycheck screen. If the item is based on quantity, be sure to enter the appropriate amount in the Quantity column.

 

For more information about setting up payroll items, we have built-in articles that you can access within QuickBooks. I can help show the steps on how to view them.

 

  1. Hit the Help button at the top to select QuickBooks Desktop Help.
  2. In the Have a Question window, type in payroll item, or a keyword in the field box.
  3. This action will display all related articles about the topic.
  4. From there, click the Add payroll items link to view all pay types you can enter in QuickBooks.
    addition qbdt pr.4.png
  5. Hit the Addition link to see the complete instructions.

If there’s anything else I can help you with, click the Reply button and post a comment. I’ll be right here to assist further. Enjoy the rest of the day.

View solution in original post

Highlighted
Level 2

calculation biweekly payroll after a temporary reduction

thanks for the detailed -i'll try this out!

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