Hi there, JRosen22001.
Please note that setting up payroll on a yearly basis or paying an employee on an annual schedule is currently unavailable because US states won't support it. QuickBooks Online allows you to choose every week, every other week, twice a month, or once a month. However, I've got steps to ensure you can achieve your goal by performing alternative way.
You can consider setting up an unscheduled payroll to create Commission only in QuickBooks. This allows you to set the specific pay period and pay date annually.
Before that, you need to set up first the employee pay type as salary and frequency as per year.
Then, you can follow the steps below on how to create a commission only.
- Choose the Payroll menu at the left panel and select Employees.
- Select the dropdown arrow and select Commission only.
- Based on your selection you may be asked additional questions. Enter any info about taxes or paycheck calculations (if applicable). Once complete, select Continue.
- Choose or review the pay period (if applicable) and pay date.
- Select the employees you'd like to pay.
- Choose the column, or select Actions ⋮, then Edit paycheck to enter your pay details. You can enter hours, compensation, memos, or any other paycheck info as necessary. If you use QuickBooks Time select Review Approved Time.
- Click Preview payroll and select or review the QuickBooks bank account to track your payroll.
- Select Preview payroll details, Save for later or Submit payroll.
- Click Close.
In addition, adding commission will be taxed the same as regular wages. However, this won't be reported on Form W-2. I recommend consulting an accountant to make sure your payroll data is in shipshape. They may provide additional guidance on how to handle payroll schedules on an annual basis and to make sure your books still follow IRS guidelines.
In case you need different payroll reports to view employee info, wages, taxes, and deductions, you can read this article: Run payroll reports.
Please don't hesitate to leave a comment below if you still have concerns about managing employee's schedules or any related to QuickBooks. I'm always around to help, JRosen22001. Take care.
