Question

Pay split between different classes

Forum|Forum|5 years ago
September 8, 2020
2 replies
5 views

Hello. We have our budget set up with accounts and classes. The classes are the different programs and major events our nonprofit has.

So for example we have an Office Supplies account code, but it can be office supplies for any one of our various Classes (programs/events).

My question is how to I split a staff members paycheck between classes? One staff members salary is budgeted between two different classes: Admin and one of the programs.

Additionally, each employee is assigned a class, so can their pay be split among two classes if they are assigned only one (see print screen)?

I already have it in the budget split between the two classes, but when i ran a P&L I realized it was not set up in Payroll, and I am not sure how to go about this.

Thanks for your help!

-Melissa

DivinaMercy_N

Moderator

Thank you for providing us details of your concern, @MelissaC.

To split the pay between classes for your employees, you can have a 2 line item for earnings with 2 different classes when creating a paycheck.

Here's how to set up a salary payroll item:

Navigate to the Lists menu, then Payroll Item List.
From the Payroll Item drop-down, choose New.
Click Custom Setup. Then Next.
Choose Wage. Then Next.
Pick Annual Salary. Then Next.
Select Regular Pay.
Select Next.
Enter a name for the salary item that easily identifies it. For example, if you want to track officer wages separately from other employees, enter a name such as "Officer Salary".
Hit Next.
Select the expense account used for tracking wages. Then tap Finish.

Next, you can add the new payroll item to the employee's set up so that it automatically shows when creating paychecks. For the detailed steps, please see this article: Set up payroll item in QuickBooks Desktop.

Then, to split the earnings when creating paychecks let's turn on this feature on the Edit menu:

Go to the Edit menu and select Preferences.
Select Payroll & Employees.
Choose Company Preferences.
To split up the earnings only, select Earnings item in the Assign one class per field.
Hit OK.

To learn more, please visit this article: Tracking payroll expenses by class.

Also, if you want to have the payroll summary report by class, please follow the steps below:

From the QuickBooks Reports menu, choose Employees & Payroll Reports. And then click Payroll Summary.
Pick Customize Report on the report button bar.
From the Column drop-down list, choose Class.
Make any other changes to the report. Hit OK.

Please let me know if there's anything else I can do for you about recording paychecks in QuickBooks. I've got your back and am always willing to help. Stay safe.

MelissaCAuthor

Thank you for the helpful response. I set up the salary payroll item as you demonstrated.

However, how do I actually split the salary? When I enter the new payroll item in Earnings under the employees Payroll Info, QB requires the two be the same amount, but one item needs to be more annually, and the other will be considerably less. The two will total the annual salary.

Also - When I am entering payroll for direct deposit, will I manually enter the amounts for each payroll item?

MaryLandT

Level 10

I can clear things out why QuickBooks requires you to enter the same amount for those earning items, MelissaC.

You can only have one rate for all salary payroll items. The workaround is to delete the other item. Then, enter it as a commission or add it manually when you create a paycheck.

To set up a commission item:

In QuickBooks Desktop, click Lists, then Payroll Item List.
At the bottom left of the Payroll Item List, click the Payroll Item drop-down button, and choose New.
Choose Custom Setup, then click Next.
In Payroll item type choose Wage. Click Next.
From the Wages list, choose Commission, then Next.
Enter the Item Name which prints on payroll checks and reports, then click Next.
Enter an Expense Account, then Next.
If you want to set a rate, in the Default Rate window, enter an amount or percentage to calculate this commission.
Click Finish.

Once done, you can then add the item to your employee's profile. Check out this article for more details: Set up commission payroll item and reports.

Let me know if you have follow-up questions by leaving a comment below. I'm always right here to help ensure you're able to pay you employees.

U

usercheryle

Can you do this in QB online as well and if so how?

JaeAnnC

Level 6

Thanks for reaching out back to us, @usercheryle.

Yes, we can assign a class to an employee in QuickBooks Online (QBO) so you can track payroll expenses as provided by ZackE above. However, let me provide you with screenshots to help you follow the steps better.

First, make sure to turn on the class tracking feature. Please note that this is only available in QBO Plus and Advanced.

To assign a class:

Go to Payroll.
Select Employees.
Choose an employee.
From the Employment details section, click Edit or Start.
In the Workers' comp class field, enter a class.
Select Save.

Currently, the option to assign multiple classes to an employee is unavailable in QBO. That said, I suggest recommending that feature to our product developers by going to the Gear icon and selecting Feedback.

As a workaround, we can set up different pay types for each worker. Here's how:

Go to Payroll and select Employees.
Choose an employee and click Edit on the Pay types section.
Choose between Hourly, Salary, and Commission only in the Set employee type section and enter an hourly rate.
Click + Add pay type to add more and enter an hourly rate for each. You may also rename these pay types.
Select Save.

Once done, you may proceed with running payroll for the employee.

You might also want to set up a direct deposit for your company payroll to avoid the hassle of paying your employees with paper checks.

You can always come back to this thread if you have additional questions about running payroll. You're always our priority. Stay safe!

U

usercheryle

We do have classes assigned to employees. But we now have to set up another class for the new grant to be able to pay the employees for their hours worked on grant #2. The employees work on BOTH grants and their hourly wages are different for each grant.

I am open to processing 2 seperate payrolls but will I need to create different GL accounts for each such as: Wages - Grant A and Wages - Grant B? And then how do I insure the company PR Tax liab for each payroll is posted to the correct class (grant)

We have to be able to track each grants expenditures separately.

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