INCREASE SALARY IN MIDDLE OF THE YEAR

Hello there, @Plutonium238.

Let me share some insights about your concern about increasing the salaries of your employees in QuickBooks Desktop (QBDT).

To answer your first question, you can utilize our free paycheck calculator. This helps you know if you're paying your employees accurately: Calculate your paycheck in seconds. It also calculates employees' pay and withholdings.

If you are unsure about the figures, I recommend seeking assistance from your accountant. If you're not affiliated with one, you can use our Find an Accountant tool to look for a Pro-Advisor near your area. 

For your second query, once you set up your employees' payroll information, it should change his/her annual pay, which will be effective moving forward. At this time, QBDT doesn't have the option to enter an effective date.

If you created a regular paycheck before adjusting their salary, you can delete and recreate it to ensure that he/she receives the correct amount. If it's a direct deposit, you can apply the difference on the next payroll.

In addition to this, you can refer to this article on how to run a report that tracks the employees' pay rate changes over a period of time: Employee Pay Adjustments History Report.

Let me know in the comment section if you need more help in setting up the salary increase in QBDT. I'll be happy to assist you always. Keep safe!

Thanks Kevin for quick response!!!  So are you saying  if the salary already is 30,000 and I was to change it to 40,000 on July 1st (start of second six month of the year) QuickBooks would automatically  calculate the first 6 months at 15,000 (half of the 30,000salary ) and the second six months of the year at 20,000 (half of the 40,000 salary for an end of  year total amount of 35,000?  i guess another way to say it is Quickbooks will calculate the new salary if changed at (new salary divided by 12 months) will be paid each month 2 times a month) no matter what time the new salary starts in a year.  QuickBooks will automatically add up the old salary payments  and the new salary payments  together for that total year correct.     our salary is set to pay 2 times per month.  please reply thank you!!!!

Thank you for getting back to us, Plutonium238.

I'm here to add some information in changing the salary for your employees in QuickBooks Desktop Payroll.

Automatic set up to change and increase the salary each month for an employee seems like a good idea. However, updating the pay rate for employees must be done carefully and manually in QuickBooks Desktop. 

That said, you'll need to adjust the new salary when the new pay takes effect.

Here's how:

1. Go to Employees on the menu bar.
2. Choose Employee Center.
3. Double-click on the employee's name.
4. Click the Payroll Info tab.
5. Under the Earnings box in the item name columns, select your Salary Item.
6. Enter the updated employee's salary under Hourly/Annual Rate column.
7. Select OK.

The information given by my colleague Kevin_C above, is to help you calculate the pay rate each month and how much taxes will be deducted.

I'm adding this article for your future reference: Year-end checklist for QuickBooks Desktop Payroll

Let me know if you still have any follow-up questions about payroll. I'll get back to you as soon as possible. Have a great day!

When it's time for a salaried employee's raise to kick in, change the salary on the employee to the new annual salary and then, going forward, QuickBooks will calculate the per-period salary based on the new salary on the employee record.

The employee's payroll history for the year, at the old salary rate, is not part of the salary calculation going forward.

Because employees typically get raises mid-year, this is really the only way it could work properly.