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Join nowFor example, when an employee works 32.58 hours or 32:35 at $15 hour, the quickbooks total comes out to $488.75 but our outside payroll company comes up with $488.70. This error occurs with all hourly transactions ending with decimals or in minutes. I am only using payroll in quickbooks to manually keep track of expenditures for our company. I am wondering if this is an error that can easily be fixed.
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When I create a new paycheck and enter 32.58 hours and $15 per hour, I get $488.70.
But, when I change my time preferences to minutes, then...
When I create a new paycheck and enter 32:35 hours and $15 per hour, I get $488.75.
This is because .58 of an hour and 35 minutes are not the same thing. 35/60 = .583333333333333333.... of an hour, which QB rounds to .58333
$15 * 32.583333 (or 32 and 35/60's) is $488.75 exactly.
Whereas 58/100's of an hour is just that:
$15 * 32.58 is $488.70 exactly.
When I create a new paycheck and enter 32.58 hours and $15 per hour, I get $488.70.
But, when I change my time preferences to minutes, then...
When I create a new paycheck and enter 32:35 hours and $15 per hour, I get $488.75.
This is because .58 of an hour and 35 minutes are not the same thing. 35/60 = .583333333333333333.... of an hour, which QB rounds to .58333
$15 * 32.583333 (or 32 and 35/60's) is $488.75 exactly.
Whereas 58/100's of an hour is just that:
$15 * 32.58 is $488.70 exactly.
"I did change it to decimals but I still came up with the same answer."
In that image, you had not yet Tabbed out, so the amount bottom right is not yet updated. What happens when it Updates?
Big Red Consulting is exactly right.
The calculation result depends on your "Display Preference" setting, and how you enter the hours.
With a Display Preference of "Decimal", if you enter 32.58, QB calculates $488.70, using only the .58 of an hour to make the calculation.
With a Display Preference of Decimal, if you enter 32:35, QB converts to decimal to calculate the gross pay and converts the 35 minutes to .58333 of an hour. So in this calculation QB is using 5 decimal places so the gross pay is 488.74995 rounded to $488.75.
If you look at the Payroll Summary Report you can see exactly what "hours" were used.
Since your payroll Company is calculating $488.70, set you Preference to Decimal and enter 32.58, not 32:35.
The setting we are asking you to confirm is:
Edit menu > Preferences, General, Company Preferences tab. Set this to Decimal.
Enter and use the same data your Payroll Provider offers in their reporting.
No two systems calculate the same, so you need to use the same method they use = decimals, not minutes. For Manual Payroll, you are inputing everything, so input the same info.
Where in QuickBooks do you go to change to the decimal format?
Thanks,
Angie Jordan
Thank you!!!!