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Frequent Explorer *

Need different wage accounts for salaried employees.

I run a nonprofit, and it is important for us to categorize how our employees spend their time (i.e. - administrative vs. programming); and I know that - with hourly employees - I can set up different wage types to go into different payroll wage accounts. Is there a way to do this for salaried employees?

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Best answer 01-18-2019

Accepted Solutions
QuickBooks Team

Re: Need different wage accounts for salaried employees.

Greetings, @okshakes.

 

I appreciate you coming back to us for additional support. Allow me to join this thread and share some more insights about employee setup.

 

The workaround you've provided is amazing. You can use that as an option to record your employee's paycheck. Another recommendation I can provide is changing your employee's pay type to Hourly.

 

Here's how:

  1. Click Workers.
  2. Select Employees.
  3. Look for the employee and open it's employee information.
  4. Click on the Pencil icon beside Pay.
  5. Click the Edit icon on number 3 ( How much do you pay Employee Name?).
  6. Change the pay type to Hourly and use $1.
  7. Click Done to save changes.

 

Once you run a paycheck for the employee, you can manually enter zero amount on the Regular Pay Hrs field. Through this, you'll no longer have to create a journal entry to adjust the wages on the accounts.

 

I also advise reaching out to your accountant who can tell you which process would be better for your specific books.

 

That should get you going today, okshakes.

 

Keep me posted if you have additional questions about payroll. Please know that I'm still for you. Just click the "Reply" button. Wishing you and your business continued success!

5 Comments
Moderator

Re: Need different wage accounts for salaried employees.

Hi there, @okshakes,

 

Thanks for visiting us today. I'm here to help you set up a different wage accounts for your salaried employees.

 

You can go to the Payroll Settings page to update the default wage accounts for your employees. Let me guide you through the steps:

  1. Click the Gear icon.
  2. Choose Payroll Settings.
  3. Select Accounting under Preferences.
  4. In the Wage Expense Accounts section, mark the I use different accounts for different groups of employees radio button.
  5. Click OK.

That should let you choose a specific category for your employee's wage expenses, @okshakes. You may also want to check this article to learn more about assigning payroll accounting preferences.

 

Please notify me if you have any questions. I'll be glad to be of your assistance any time. Have a great day!

Frequent Explorer *

Re: Need different wage accounts for salaried employees.

Thank you for your response, but what I am really needing is a way to split one salaried employee between two wage accounts:

 

For example: Joe Smith, a salaried employee, was paid $1500 to Administrative | Joe Smith , a salaried employee, was paid $1500 to Programming. All on one paycheck.

 

Is this possible?

QuickBooks Team

Re: Need different wage accounts for salaried employees.

Pleased to hear again from you, @kshakes.

 

Yes, you can certainly split the Wage Expense Account where your employee's wages are connected. I'd be glad to walk you through in setting up your Payroll account preferences.

 

First, let's create a sub-account for each wage type under your payroll expense account in the Chart of Accounts. Here's how:

  1. Go to Accounting.
  2. Choose Chart of Accounts.
  3. Click the New button.
  4. Fill in the account information according to your preferences. 
  5. You can specify the name of each account (i.e Salaried Programming or Salaried Administrative).
  6. Put a check mark on "Is sub-account".
  7. Choose Payroll Expense.
  8. Click Save and Close.

 

 

Once completed, create and add wage type to the specific employee. Here's how:

  1. Go to Workers.
  2. Select Employees.
  3. Look for the employee and open it's employee information.
  4. Click on the Pencil icon beside Pay.
  5. Hit the Pencil icon under How much do you pay Jung Suk? to update employee's information.
  6. Click on Add Pay Type.
  7. You can enter the specific name of the Pay Type.
  8. Click Done.

Lastly, let's assign specific account to each wage type. Here's how:

  1. Go to the Gear Icon.
  2. Choose Payroll Setting.
  3. Choose Accounting under Preferences Column.
  4. Under the section for Wage Expense Account, select I use different accounts for different wages.
  5. Look for the Wage Type you have created awhile ago.
  6. Click the drop-down arrow to assign expense account to each wage type.
  7. Hit Ok.

That should do it! This should allow you to create one paycheck for a salaried employee and split between two wage expense accounts for accounting purposes.

 

Feel free to visit our Community page if you there are any program features you’d like to get more familiar with. I’m always here to lend a hand.

Frequent Explorer *

Re: Need different wage accounts for salaried employees.

Thank you for your thorough response. Just one little question...

 

It looks like you still need to enter $1 in the salary field, so on your P&L, you'll have a lingering $26 (assuming a bi-weekly pay schedule) for your employees under Payroll. Correct?

 

*A work-around I have been experimenting with is simply to enter a recurring journal entry after each pay period to adjust the wages to the appropriate accounts.*

 

Thoughts?

QuickBooks Team

Re: Need different wage accounts for salaried employees.

Greetings, @okshakes.

 

I appreciate you coming back to us for additional support. Allow me to join this thread and share some more insights about employee setup.

 

The workaround you've provided is amazing. You can use that as an option to record your employee's paycheck. Another recommendation I can provide is changing your employee's pay type to Hourly.

 

Here's how:

  1. Click Workers.
  2. Select Employees.
  3. Look for the employee and open it's employee information.
  4. Click on the Pencil icon beside Pay.
  5. Click the Edit icon on number 3 ( How much do you pay Employee Name?).
  6. Change the pay type to Hourly and use $1.
  7. Click Done to save changes.

 

Once you run a paycheck for the employee, you can manually enter zero amount on the Regular Pay Hrs field. Through this, you'll no longer have to create a journal entry to adjust the wages on the accounts.

 

I also advise reaching out to your accountant who can tell you which process would be better for your specific books.

 

That should get you going today, okshakes.

 

Keep me posted if you have additional questions about payroll. Please know that I'm still for you. Just click the "Reply" button. Wishing you and your business continued success!