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Level 1

Fringe benefit payable as cash

our employees are paid by the hour - and the amount is set by the service contract act.  In addition, our employees receive an additional fringe benefit in cash per hour.

 

For instance

Hourly rate - 11.31 per hour

Fringe payable as cash -4.48 per hour

Must be accounted for separately - both are taxable.

 

So employees receive both by the hour.  Can this be accomplished in QBO payroll online?


Thanks?

7 Comments
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QuickBooks Team

Fringe benefit payable as cash

That is definitely possible in QuickBooks Online , clayreed

 

Let me walk you through how you can set up and assign multiple hourly items to your employees. 

 

  1. Open the employee's profile in the Worker's menu.
  2. Click the Pencil icon beside Pay.
  3. Go to Step 3, then click the Pencil icon beside Additional Pay.
  4. Click Add an hourly rate, then enter the name if the payroll item and it's rate. 
  5. Click Done

The steps are also shown in my screenshots below. Feel free to comment back should you need more help. 

 

add hourly rate.PNG add hourly rate 2.PNG add hourly rate 3.PNG add hourly rate 4.PNG add hourly rate 5.PNG

Highlighted
Level 1

Fringe benefit payable as cash

Jeno - thank you for the excellent reply

 

Let me throw you another curveball.  We sometimes have to use two or three base hourly rates depending upon the wage determination for that job type.  The fringe (cash benefit per hour stays the same) but the base hourly rate changes.  Thoughts?

QuickBooks Team

Fringe benefit payable as cash

I know how QBO handles that scenario and I'm here to show you how, Clayreed.

 

When running payroll, you can only change the number of hours an employee has worked for that job. Since it's the rate that constantly changes, you'll have to go back to the employee's profile and edit it there. QBO can let you add up to 8 hourly rates for an employee. So if you use two or more base hourly rates, you can set them up and change them if you need to.

 

Here's how:

  1. Form the Workers menu, click the employee's name.
  2. Once the profile opens, go to Step 2 or the How much do you pay (employee name) section.
  3. Click the Add additional pay types link.
  4. Click the Add an hourly rate link.
  5. Enter the name and the rate per hour in the boxes provided.
  6. Click Done.

I also added screenshots for you.

 

I'll be around if you have any further questions.

 

Highlighted
Level 1

Fringe benefit payable as cash

Is it possible to do this with QuickBooks Desktop?

 

Thank you!

Highlighted
QuickBooks Team

Fringe benefit payable as cash

Hi there, stephanie1213.

 

Thank you for posting here in the QuickBooks Community.

 

Yes, it's possible to set up a fringe benefit payable as cash in QuickBooks Desktop. You'll have to set up a taxable payroll item.
 
Here's how:
 
1. Click the Lists menu, then choose Payroll Item List.
2. Select the Payroll Item button, then click the New button.
3. Select Custom Setup. Choose between Company Contribution or Addition, and select Next.
4. Enter a name of the item and select Next.
5 On the drop-down arrows, choose Expense account and Liability, then select Next.
6. From The Tax Tracking Type drop-down arrow, select Fringe Benefits. Click Next.
7. Click the Next button twice.
8. On the Default rate and limit page, enter the default rate in the first box if the benefit will be a specific amount.
9. In the second section of the Default rate and limit page, enter an amount of any limits on the item.
10. Click the Finish button.
 
 
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If you have employees who are eligible for fringe benefits, please check this article what IRS tax forms Fringe benefits are reported on: Fringe benefits and tax forms.
 

 

I'll be glad to help you if you have any other questions.​ Have a good day!

Highlighted
Level 1

Fringe benefit payable as cash

Good Afternoon,

 

I have a follow-up question about this response.  After the taxable payroll item is set up, is it possible to run a Job Cost Report that lists/includes the taxable payroll item?  Also, is it possible to include this taxable payroll item on an invoice?

 

Thank you!

Abbey

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QuickBooks Team

Fringe benefit payable as cash

Hi there, abbey1020.

 

Thank you for reaching in the Quickbooks Community.

 

I'll be provide some information about reports in Quickboks Desktop and additional information about transactions.

 

QuickBooks doesn't include the taxable payroll item when you run or pull up Job Cost Report.

 

Job Costing report track the expenses for a job and comparing those expenses to your revenue.

 

If you want to pull up reports that includes the taxable payroll item, you can run any reports related to a payroll.

 

For now, Quickbooks wont include the taxable payroll item on an invoice, these two transactions are different. Payroll item is under Employee information while the invoice is on Customer transaction.

 

Please check this article what are different reports that cater to your business needs and If you need additional reporting functionality: Understand reports.

 

 

Please feel free to get back to us if you have other concerns with QuickBooks Online. We are always here to help you. Have a nice day!​

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