cancel
Showing results for 
Search instead for 
Did you mean: 
clayreed
Level 1

Fringe benefit payable as cash

our employees are paid by the hour - and the amount is set by the service contract act.  In addition, our employees receive an additional fringe benefit in cash per hour.

 

For instance

Hourly rate - 11.31 per hour

Fringe payable as cash -4.48 per hour

Must be accounted for separately - both are taxable.

 

So employees receive both by the hour.  Can this be accomplished in QBO payroll online?


Thanks?

9 Comments 9
JenoP
QuickBooks Team

Fringe benefit payable as cash

That is definitely possible in QuickBooks Online , clayreed

 

Let me walk you through how you can set up and assign multiple hourly items to your employees. 

 

  1. Open the employee's profile in the Worker's menu.
  2. Click the Pencil icon beside Pay.
  3. Go to Step 3, then click the Pencil icon beside Additional Pay.
  4. Click Add an hourly rate, then enter the name if the payroll item and it's rate. 
  5. Click Done

The steps are also shown in my screenshots below. Feel free to comment back should you need more help. 

 

add hourly rate.PNG add hourly rate 2.PNG add hourly rate 3.PNG add hourly rate 4.PNG add hourly rate 5.PNG

clayreed
Level 1

Fringe benefit payable as cash

Jeno - thank you for the excellent reply

 

Let me throw you another curveball.  We sometimes have to use two or three base hourly rates depending upon the wage determination for that job type.  The fringe (cash benefit per hour stays the same) but the base hourly rate changes.  Thoughts?

SophiaAnnL
Moderator

Fringe benefit payable as cash

I know how QBO handles that scenario and I'm here to show you how, Clayreed.

 

When running payroll, you can only change the number of hours an employee has worked for that job. Since it's the rate that constantly changes, you'll have to go back to the employee's profile and edit it there. QBO can let you add up to 8 hourly rates for an employee. So if you use two or more base hourly rates, you can set them up and change them if you need to.

 

Here's how:

  1. Form the Workers menu, click the employee's name.
  2. Once the profile opens, go to Step 2 or the How much do you pay (employee name) section.
  3. Click the Add additional pay types link.
  4. Click the Add an hourly rate link.
  5. Enter the name and the rate per hour in the boxes provided.
  6. Click Done.

I also added screenshots for you.

 

I'll be around if you have any further questions.

 

stephanie1213
Level 1

Fringe benefit payable as cash

Is it possible to do this with QuickBooks Desktop?

 

Thank you!

ChristieAnn
QuickBooks Team

Fringe benefit payable as cash

Hi there, stephanie1213.

 

Thank you for posting here in the QuickBooks Community.

 

Yes, it's possible to set up a fringe benefit payable as cash in QuickBooks Desktop. You'll have to set up a taxable payroll item.
 
Here's how:
 
1. Click the Lists menu, then choose Payroll Item List.
2. Select the Payroll Item button, then click the New button.
3. Select Custom Setup. Choose between Company Contribution or Addition, and select Next.
4. Enter a name of the item and select Next.
5 On the drop-down arrows, choose Expense account and Liability, then select Next.
6. From The Tax Tracking Type drop-down arrow, select Fringe Benefits. Click Next.
7. Click the Next button twice.
8. On the Default rate and limit page, enter the default rate in the first box if the benefit will be a specific amount.
9. In the second section of the Default rate and limit page, enter an amount of any limits on the item.
10. Click the Finish button.
 
 
kkkkkkkkkkkkkkkkkkkkkkkkkkk.PNG
 
kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk111111111111111111111111111.PNG
 
If you have employees who are eligible for fringe benefits, please check this article what IRS tax forms Fringe benefits are reported on: Fringe benefits and tax forms.
 

 

I'll be glad to help you if you have any other questions.​ Have a good day!

abbey1020
Level 1

Fringe benefit payable as cash

Good Afternoon,

 

I have a follow-up question about this response.  After the taxable payroll item is set up, is it possible to run a Job Cost Report that lists/includes the taxable payroll item?  Also, is it possible to include this taxable payroll item on an invoice?

 

Thank you!

Abbey

ChristieAnn
QuickBooks Team

Fringe benefit payable as cash

Hi there, abbey1020.

 

Thank you for reaching in the Quickbooks Community.

 

I'll be provide some information about reports in Quickboks Desktop and additional information about transactions.

 

QuickBooks doesn't include the taxable payroll item when you run or pull up Job Cost Report.

 

Job Costing report track the expenses for a job and comparing those expenses to your revenue.

 

If you want to pull up reports that includes the taxable payroll item, you can run any reports related to a payroll.

 

For now, Quickbooks wont include the taxable payroll item on an invoice, these two transactions are different. Payroll item is under Employee information while the invoice is on Customer transaction.

 

Please check this article what are different reports that cater to your business needs and If you need additional reporting functionality: Understand reports.

 

 

Please feel free to get back to us if you have other concerns with QuickBooks Online. We are always here to help you. Have a nice day!​

delco
Level 1

Fringe benefit payable as cash

We pay a hourly wage of 52.75, and in addition we are required to pay a cash benefit of 50.55 hourly that is not taxed. please advise how to set up in quickbooks payroll lists

JenoP
QuickBooks Team

Fringe benefit payable as cash

Thanks for joining us here, delco.

 

Can you tell us what version of QuickBooks you're using? If you have QuickBooks Desktop, follow these steps on how to set up an hourly wage:

 

  1. Open the employee's profile in the Payroll Center.
  2. Proceed to the Payroll Info tab.
  3. Under the Earnings section, click the drop-down list and select Add New.
  4. Press CTRL + N altogether.
  5. Select Hourly Wages, then click Next.
  6. Select Regular Pay, then click Next.
  7. Enter the name of the payroll item, then click Next.
  8. Select an expense account, then click Finish.
  9. Enter 52.75 in the Hourly/Annual Rate column.
  10. Click OK.

Then, follow these steps to add the non-taxable cash benefit:

 

  1. Proceed to the Additions, Deductions, And Company Contributions section of the Payroll Info tab.
  2. Click the drop-down list and select Add New.
  3. Select Addition, then click Next.
  4. Enter the name of the payroll item, then click Next.
  5. Select an expense account, then click Next.
  6. Select None in the Tax tracking type window, then click Next twice.
  7. Select Calculate this item based on hours, then click Next.
  8. Choose between Gross or Net Pay, then click Next.
  9. Enter 50.55 in the Default rate and limit window, then click Finish.

If you're using QuickBooks Online, follow the same steps in my original response. I'd also recommend checking out this article to get more details: Supported pay types and deductions explained.

 

I'll be around if you have other questions about payroll. 

 

 

Say "Thanks" by clicking the thumb icon in a post

Mark the post that answers your question by clicking on "Accept as solution"

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us