How to approach paying two salaries for one employee

arober24 · ‎September 30, 2022

What might be the best way to set up an employee to have two separate salaries?

I am wanting to avoid any confusion if any reports are generated that would show hours worked for salaried employees.

Here is the situation:

A business was awarded a grant. The terms of using this grant money include tracking how and where the grant funds are used. The business wants to use some of the grant funds to pay a portion of the regular salary for employees. When this business uses the grant money for partial salary payments, (Example. : Employee is normally paid a monthly salary of $3,000, This employee should now be set to receive $2,889 Regular Salary and $111 Grant Salary on the same check going forward) how would I approach setting this up in QuickBooks; is there a way to have the payroll item set up where hours and minutes are not needed while creating the paycheck?

I have already figured out the hours and minutes that will simultaneously display the correct dollar amounts for both the salary and grant salary items, but I was curious about the main question:

Is there a way to set two salaries amounts for one employee without needing to enter "Hours : Minutes" while creating the check? Would there a better way to approach this altogether?

BigRedConsulting · ‎September 30, 2022

There isn't a way to control the split of the employee's salary - to make it other than split equally among the salary items used on the paycheck - without entering hours to cause a different pro-ration, as you've noted.

However, you can stop the hours from printing on the paycheck stub by de-selecting the print option for salaried hours:

Candice C · ‎September 30, 2022

Good afternoon, @arober24.

Welcome to the Community! I can provide you with some helpful details about paying two salaries for one person.

The best route, based on the information you gave, would be to have the regular salary pay type set up for the employee and then add the commission pay type on them well. This will allow you to pay out a custom dollar amount when running payroll without having to enter the hours and minutes worked, and commission is still taxed the same as regular pay.

With that being said, when you set up the commission pay type, you can edit the name to display "Commission - Granted Funded, " or "Salary Portion Grant Funded." This way you know that part of it is paid for by that grant specifically when pulling up a paycheck or paystub, or running a payroll detail report.

Learn more about pay types through this guide.

This should do the trick. If you have any other questions, don't hesitate to ask. Have a wonderful Friday!

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How to approach paying two salaries for one employee

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