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.
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?
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.
The steps are also shown in my screenshots below. Feel free to comment back should you need more help.
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?
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.
I also added screenshots for you.
I'll be around if you have any further questions.
Hi there, stephanie1213.
Thank you for posting here in the QuickBooks Community.
I'll be glad to help you if you have any other questions. Have a good day!
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?
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 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!
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:
Then, follow these steps to add the non-taxable cash benefit:
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.
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