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

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

For 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.

Solved
Best answer December 10, 2018

Best Answers
Anonymous
Not applicable

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

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.



View solution in original post

20 Comments
Anonymous
Not applicable

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

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.



View solution in original post

dmaiz
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

That's what I thought it was at first so I changed the settings from minutes to decimals but got the same total. I would like to post a picture to show you from my computer but it will not let me on here.
Anonymous
Not applicable

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

You can attach a picture to your question or an answer, but (for some reason no one knows) not to a comment (which this is.)
qbteachmt
Level 15

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

"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?


dmaiz
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

I tabbed out and it still stayed the same. Also, I can not change the total in 'Employee Summary' either. Thanks for your help!
Anonymous
Not applicable

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

What's your current time format in QB?  When you tab out, how to the hours appear?
dmaiz
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

The time is in decimal format, when I tab out the format stays just like this: 32.58 for hours. Is that what you meant?
Anonymous
Not applicable

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

In decimal format you should get 488.70, I would think.  I do.  Have you tried closing and restarting the check?
Also, be sure to enter the time in the current format to be sure to see the effect of the current time format.  If decimal, then enter decimal.  If minutes, enter minutes.  It doesn't seem like it should matter, but it might.
pdevore
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

dmatz-
If your Preference is Decimal, and you enter 32:35, QB will change the display you see to 32.58, BUT, to calculate the gross pay QB will use 32.58333 because QB had to convert your "minutes" entry so it will still be 488.75. If you look at the Payroll Summary Report you will see exactly what "hours" QB used.
pdevore
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

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.

qbteachmt
Level 15

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

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.

dmaiz
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

For some reason it is not changing the total. I am continuing to get the same total even though the setting are set up correctly.
qbteachmt
Level 15

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

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.

dmaiz
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

I did change it to decimals but I still came up with the same answer. I attached a picture to the question.
ajordan65
Level 2

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

Where in QuickBooks do you go to change to the decimal format?

 

Thanks,

Angie Jordan

qbteachmt
Level 15

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

@ajordan65

 

It's in this topic, already: Edit menu > Preferences, General, Company Preferences tab

ajordan65
Level 2

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

Thank you!!!!

alme
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

Have employees paid hourly rate.  We record hours only in quarter hour increments.

Example: $56.37 times 80 hours calculates as $4,509.63 should be $4,509.60

How do I fix this? This causes complications with balancing.

Rose-A
Moderator

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

Downloading the latest tax table is a good start when it comes to fixing payroll-related issues in QuickBooks, alme.

 

If you're still getting the same result after the update, you can toggle the format from Decimal to Minutes and vice versa through the Time Preference settings in QuickBooks Desktop.

 

Here's how:

 

  1. Click Edit at the top menu bar and choose Preferences.
  2. From the left panel, click General.
  3. Select the Company Preferences.
  4. Toggle your Time Format from there.
  5. Hit OK.

 

However, if the problem persists, we can perform the basic troubleshooting steps to fix this by verifying and rebuilding your data. See the outlined steps below:

 

To Verify Data:

 

  1. Click Window at the top menu bar, then Close All.
  2. From the File menu, choose Utilities.
  3. Tap Verify Data.

 

To Rebuild Data:

 

  1. Click Window at the top menu bar, then Close All.
  2. From the File menu, choose Utilities.
  3. Hit Rebuild Data.
  4. You will receive a warning message to backup your company file, press OK.
  5. Click OK when you get the message "Rebuild has completed".

 

In case you need help with adjusting your payroll balances, you go through this article for the detailed steps: Adjust payroll liabilities in QuickBooks Desktop.

 

Feel free to post again if you have other concerns about QuickBooks. I'll be more than happy to help. Have a good one!

alme
Level 1

Quickbooks is calculating employee wage total incorrectly, only with hours ending in decimals or in minutes. How do I fix this error?

Thank you for the response.  I verified that I have the preferences set to decimal.  So, there is something else that is going on.  

 

I will try the rebuild as you mentioned.

 

Thank you again for the suggestions.

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us