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BHGSBookkeeper
Level 2

Journal Entry to Classify Other Payroll Items

Since there doesn't seem to be a way (already contacted and heard back from support) to classify the Other Payroll Items on the employees' pay stubs, I need to make journal entries to move these to a class.  Can you please provide guidance as to the best way to do this?  Thanks!

5 Comments 5
BigRedConsulting
Community Champion

Journal Entry to Classify Other Payroll Items

I think you can classify the items, which will use the same class(es) as are used in the earnings table. Do you need something different than that?

BHGSBookkeeper
Level 2

Journal Entry to Classify Other Payroll Items

I have each employee set up for a class in their Payroll Info.  Then I have the Company Preferences under Payroll & Employees set up to Assign one class per Earnings item.  What happens is that the Earnings go to the class that is set up per each Earnings Item Name, but then all of the Other Payroll Items are going to unclassified.  Currently, there is no way to add a Class per each other-payroll item and the class set up for each employee does not seem to work to put the non-earnings items there when I have the Earnings set up to assign per earnings item.  If I set up the Company Preferences to Assign one class per Entire paycheck, it covers the entire paycheck - both Earnings and Other Payroll Items, but that doesn't work for us, as we need the Earnings items classified per item.  So I need to see if there is a way to do a JE to move the Other Payroll Items to a class so that they are not on the unclassified report.

GreenEscapesLandscape
Level 1

Journal Entry to Classify Other Payroll Items

Did you ever come up with a solution on how to class other payroll items? 

BigRedConsulting
Community Champion

Journal Entry to Classify Other Payroll Items

@BHGSBookkeeper  @GreenEscapesLandscape 

RE: What happens is that the Earnings go to the class that is set up per each Earnings Item Name, but then all of the Other Payroll Items are going to unclassified. Currently, there is no way to add a Class per each other-payroll item and the class set up for each employee does not seem to work to put the non-earnings items there when I have the Earnings set up to assign per earnings item.

 

In the case where you are using classes in the paycheck earnings table, so that you can assign a different class to each earnings row, you can actually set things up so that your other addition items, and also company paid taxes, will be assigned classes.

 

To do this, edit your addition items (and some other types as well) and select the option as seen here:

TrackPayrollItemByJobClass.JPG

 

After making this change, then on new paychecks when you use the addition item (or if you edit existing paychecks and trick them into re-calculating), the item will be assigned the same classes you use in the earnings table and it will also be split and the amounts assigned to each class pro-rated based on the earnings table.

 

So, if a paycheck splits the earnings 75% to one class and 25% to another, then the addition item will also be split 75%/25%. The addition item will look the same on the paycheck, but when recorded (in this example) there will be two detail rows actually on the transaction and visible in reports:

 

TrackPayrollItemByJobClass2.JPG

 

While you'll only see one amount when reviewing the paycheck (above), on a Transaction Detail report, you'll see two rows, one for each class, split in the same ratio as the earnings table:

 

TrackPayrollItemByJobClass3.JPG

 

karen0701
Level 2

Journal Entry to Classify Other Payroll Items

I did JEs to class wages as in this example:

Account:  Payroll Expenses: Wages: Salary

CR 10,488.75 (no class)

Account:  Payroll Expenses: Wages: Salar

DR 10, 488.75 Class

You can check that it worked by running a P&L by class before & after.  The wages should have moved from Not Specified to the class you wanted.

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