Payroll Item Type Change

I've come to guide you as to how you can change a payroll item type in QuickBooks Desktop (QBDT), @Scottzzz.

You can make any necessary changes to the Payroll Item Name, the Liability/Expense Account Associated with the item, How to Calculate the item, and/or Default Rates and Limits. However, you're unable to edit the payroll item type. To change it, you'll have to create a new company contribution payroll item (i.e., ICHRA). Here's how:

1. From Lists, select Payroll Item List.
2. Select Payroll Item and choose New.
3. Choose Custom Setup and click Next. 
4. Select Company Contribution, and select Next. 
5. Enter a name for this item (i.e., ICHRA) and select Next. 
6. Follow the on-screen steps and enter all the necessary data needed.
7. Click Finish once done.

Then, in case you've used the addition payroll item on one or more paychecks, this would cause incorrect tax totals to be withheld on employees' W2s. To correct this, you'll have to change the payroll item used on paychecks. You can follow this article for the step-by-step guide: Edit payroll items used on paychecks.

Also, I'm adding this article to answer the most common W2 questions so you're ready for tax season: W-2 General forms and filing information. It includes topics about form availability and filing one, to name a few.

Please don't hesitate to let me know in the comments if you have other payroll concerns and W2 questions in QBDT. I'm always around to help. Take care, and I wish you continued success, @Scottzzz.

Thanks for the reply.  I have created a new payroll item company contribution per instructions for the ICHRA.  I also followed instructions found in the community for QSEHRA which is similar.

When I create the paycheck and choose the payroll item, the reimbursement does not get added to the check.  It gets added to company summary and I don't know where it goes from there.   I am using desktop pro 2019.

Can you help?

Hi @Scottzzz.

Good to hear that you've already created a new payroll item.

I'm here to help ensure that the reimbursement will be added to your check. 

Let's make sure that you created the correct payroll item for the employee.

If you need help in editing the payroll item, here's how:

1. Select Lists on the top menu bar. Then select Payroll Item List.
2. Right-click the item and select Edit.
3. Choose Next twice. Enter the correct tax tracking type. Then select Next.
4. Click the correct taxes. Then select Next.
5. Tap Calculate Based on Quantity. Then select Next.
6. Enter the limit type, if all the employees have the same rate and limit.
7. If the employees do not have a default rate and limit but do have the same rates and limits, enter the amounts.
8. Select Finish.

For more detailed steps, you can check out this article: Edit payroll items used on paychecks.

Here's a guide that can give more insight into this subject for your future reference: Adjust payroll liabilities. 

If you've got other questions in mind about QuickBooks Desktop Payroll, feel free to leave a reply below. I'll be glad to assist you in the future.

...yes, but HOW do you edit/change a payroll item type I have already set up.  I need to change it from Yearly Salary to Bonus.  I see no way to get back in there to edit.

@AlabamaPamela 

RE: ..yes, but HOW do you edit/change a payroll item type I have already set up. 

You can't. Once created, payroll item types - like salary, addition, deduction, tax items, and so on - can't be changed.

RE: I need to change it from Yearly Salary to Bonus. 

Can't be done. Instead, set up a new Bonus item and start using it instead of the existing item.

Thanks for joining this thread, AlabamaPamela.

You can edit a payroll item's type using the steps detailed in AbegailS_'s post. When you reach step 3, you'll be able to change your item's tax tracking type.

If you've already tried performing the steps from my colleague's post, but didn't see a selectable Edit option when reaching step 2, I'd recommend troubleshooting initially with your Verify Data utility. This identifies known issues within company files and informs users if their Rebuild Data tool needs to be utilized afterwards.

Here's how it's used:

1. Click Window, then Close All.
2. In your top menu bar, go to File.
3. Choose Utilities.
4. Select Verify Data.

In the event its results show a "Your data has lost integrity," message, this indicates there's damage in your file. You can use the Rebuild Data utility to fix it. For specific errors, there may already be a resource for them on our support site.

If it displays a "QuickBooks detected no problems with your data," notification, or you've searched our help articles and didn't find any existing resources about the specific error it displayed, you can move on to troubleshooting with your QuickBooks Tool Hub.

Here's how:

1. Close QuickBooks and download a copy of the utility's most recent version, then run it.
2. Follow along with your on-screen steps to complete installation and agree with our terms and conditions.
3. Once it's installed, double-click its icon to open the tool hub. If you can't find your app, perform a search in Windows for "QuickBooks Tool Hub" and select the program.
4. Access your Company File Issues tab and use the Quick Fix my file and QuickBooks File Doctor tools to troubleshoot your company file. In the event you need additional assistance, choose File Dr Help.

In the event you're still unable to see and/or use your Edit options for payroll items, you'll want to get in touch with our Customer Care team. They'll be able to pull up your account in a secure environment, conduct further research, and create an investigation ticket if necessary.

Please don't hesitate to send a reply if there's any questions. Have an awesome Tuesday!

@ZackE  RE: You can edit a payroll item's type using the steps detailed in AbegailS_'s post. When you reach step 3, you'll be able to change your item's tax tracking type.

1) AlabamaPamela didn't ask about changing the item's tax tracking type. This is very clear from her question.

2) You can't change the tax tracking type for either a Yearly Salary or a Bonus type item, which are always Compensation. You should know this offhand, and you would have figured it out had you actually tried it. Which you clearly did not.

3) A payroll item's Type is not the same as its tax tracking type. You should know this. Why you don't is beyond me.

4) There is no "Step 3" when editing either an Annual Salary or a Bonus, both of which have only two slides when they are edited. You would know this if you had tried to edit such an item.

5) Based on the AlabamaPamela's post, there is nothing wrong with the company file. Telling the user to verify or rebuild the file to 'fix' the issue, where there is no issue, is not helpful.

Your answer adds no value and just confuses things.