cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Pay checks a penny too much

I noticed that the payroll for this week calculated $0.01 too much on two different pay checks.  Our company is a job shop fabricator so several of our people will charge their work hours against job numbers.  One employee is paid at an hourly rate of $14.25.  They worked 40 hours for the week so their paycheck should have been $570.00.  Quickbooks calculated it at $570.01 as follows:   

 

 

RateHrsExtendedQB Rounded
14.250.50$7.1257.13
14.251.00$14.25014.25
14.250.50$7.1257.13
14.2538.00$541.500541.5
Totals40.00$570.000570.01

 

Is there a way to prevent this from happening?

5 Comments
Highlighted
Level 7

Pay checks a penny too much

You cannot pay a percentage of a penny.  Your example includes to 1/2 pennies that equal one penny. 

Highlighted
Level 1

Pay checks a penny too much

Did not try to pay a percentage of a penny.  This is how the math would work.  I would expect there would be a background algorithm that would clean up this kind of minor discrepancies.  let the program calculate as it is first time through and then take a total hour calculation and compare the results and accept the total hour calculation as the final answer.

Highlighted
Moderator

Pay checks a penny too much

Thanks for getting back to us, @vgardner218.

 

There isn't currently a way turn off or prevent QuickBooks Desktop (QBDT) from rounding off paychecks calculation. Our system ensures that the employee's YTD totals for those taxes are always exactly correct. You and the employee don't need to be concerned about these small variations.

 

For additional information, consider checking out these articles:

 

 

This should answer your concern for today. Please let me know if you need anything else in the comment. I'll be happy to help. Take care always.

Highlighted
Level 1

Pay checks a penny too much

Mine does this too, and I get that you (QB, QB moderators/ pros etc) state that it is a rounding issue- I COMPLETELY disagree- it is a SOFTWARE ISSUE!!  As there is no reason for it to be rounding up on a paycheck, plus it does not round correctly if this were the case. This needs to be looked into and fixed.  Our system has been doing this for almost every payroll since I have worked for our company (4yrs) and  I have worked for other companies that have the same issue.  The reason I say it is a software issue and not a rounding issue is because it does not simply add a single penny- which is what happens when you round- no it adds any where from 2-6 pennies.  My payroll this week has a total of .06 added on two separate checks.  I have one check that should equal  44.25 hours x $23.50 = 1039.88 ROUNDED UP but QUICKBOOKS SAYS 1039.92 that is .04 cents of rounding- incorrect!!  Math does not compute!   My second check should equal  $1760.31 but quickbooks has decided it needed rounding as well and changed it to $1760.33.   What I have noticed is that the system only rounds up if the person has a fraction in their pay or their hours and I get that QuickBooks wants to say it is not wrong- but I wonder how QuickBooks would feel about those pennies over time (if they were responsible for reimbursing EVERY single company who used their service)- while yes they are pennies they do add up and would QuickBooks allow their employees to round up their hours every paycheck?  FIX THIS SOFTWARE GLITCH!  Because yes it is a math coding glitch!

Highlighted
Moderator

Pay checks a penny too much

Hello there, frustrateduser2.

 

I can see your point that you want to turn off the auto-correcting feature in QuickBooks. As shared by my colleague, sometimes there will be differences of a few pennies due to the way those taxes with fixed rates were computed. 

 

There are some situations where QuickBooks needs penny differences. The following sections describe some situations where penny differences do matter: Why do I occasionally notice penny rounding differences?.

 

Keep me posted if you have any other questions about payroll. I'll be happy to help you further. Wishing you and your business success. 

Need to get in touch?

Contact us