Payroll tax allocated to cost of job

Phillip · ‎December 20, 2018

Hi, Assume the payroll tax is $1 in a particular payrate, if an employee spent 11 hours in project 0001, 13 hours in 0002, and 8 hours in general office duty.

In the job profitability summary,I expect to see actual cost from $11 in job 0001, $13 from job 0002.

In the P&L, I expect to see $24 in job cost(before gross profit), and $8 in expenses(after gross profit).

Except making journal entry ( in the real world, there are multiples employees for multiple jobs) , how can I allocate the payroll tax expenses between general expenses and the cost of each job VIA payroll setting?

VivienJ · ‎December 20, 2018

Hi there, Phillip!

Thanks for providing such detailed information about the payroll process you want to achieve. I can share my insights about it in QuickBooks Desktop.

Each payroll item has an assigned payroll expense account automatically populated upon setup. This to ensure that the wages and taxes are designated correctly in each line items on the payroll reports and forms come tax time.

Once you create paychecks, the program will place the gross wages and payroll taxes amounts on those expense accounts. For example; the Hourly Wage and Yearly Salary are tracked under the Gross Wages expense. While, the SSN and Medicare are under the Payroll Taxes expense.

In order to allocate one account to the other, you can continuously use the journal entries. Make sure to consult with an accountant prior to creating these changes. They are the experts in handling tax-related concerns and set up to ensure your job costs and expenses are moved correctly.

Don't hesitate to let me know if there's anything else I can do to help you succeed with QuickBooks. Have a great day!

Anonymous · ‎December 23, 2018

RE: Except making journal entry ( in the real world, there are multiples employees for multiple jobs) , how can I allocate the payroll tax expenses between general expenses and the cost of each job VIA payroll setting?

You can't. A payroll item will always use only it's one expense account. There isn't a way to override that per job or anything else.

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Payroll tax allocated to cost of job

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