Pay split between different classes

Thank you for providing us details of your concern, @MelissaC.

To split the pay between classes for your employees, you can have a 2 line item for earnings with 2 different classes when creating a paycheck. 

Here's how to set up a salary payroll item:

1. Navigate to the Lists menu, then Payroll Item List.
2. From the Payroll Item drop-down, choose New.
3. Click Custom Setup. Then Next.
4. Choose Wage. Then  Next.
5. Pick Annual Salary. Then Next.
6. Select Regular Pay.

7. Select Next.

8. Enter a name for the salary item that easily identifies it. For example, if you want to track officer wages separately from other employees, enter a name such as "Officer Salary".

9. Hit Next.

10. Select the expense account used for tracking wages. Then tap Finish.

Next, you can add the new payroll item to the employee's set up so that it automatically shows when creating paychecks. For the detailed steps, please see this article: Set up payroll item in QuickBooks Desktop. 

Then, to split the earnings when creating paychecks let's turn on this feature on the Edit menu: 

1. Go to the Edit menu and select Preferences.
2. Select Payroll & Employees.
3. Choose Company Preferences.
4. To split up the earnings only, select Earnings item in the Assign one class per field.
5. Hit OK. 

To learn more, please visit this article: Tracking payroll expenses by class.

Also, if you want to have the payroll summary report by class, please follow the steps below:

1. From the QuickBooks Reports menu, choose Employees & Payroll Reports. And then click Payroll Summary.
2. Pick Customize Report on the report button bar.
3. From the Column drop-down list, choose Class.
4. Make any other changes to the report. Hit OK.

Please let me know if there's anything else I can do for you about recording paychecks in QuickBooks. I've got your back and am always willing to help. Stay safe.

Thank you for the helpful response. I set up the salary payroll item as you demonstrated. 

However, how do I actually split the salary? When I enter the new payroll item in Earnings under the employees Payroll Info, QB requires the two be the same amount, but one item needs to be more annually, and the other will be considerably less. The two will total the annual salary.

Also - When I am entering payroll for direct deposit, will I manually enter the amounts for each payroll item?

I can clear things out why QuickBooks requires you to enter the same amount for those earning items, MelissaC.

You can only have one rate for all salary payroll items. The workaround is to delete the other item. Then, enter it as a commission or add it manually when you create a paycheck.

To set up a commission item:

1. In QuickBooks Desktop, click Lists, then  Payroll Item List.
2. At the bottom left of the Payroll Item List, click the Payroll Item drop-down button, and choose New.
3. Choose Custom Setup, then click Next.
4. In Payroll item type choose Wage. Click Next.
5. From the Wages list, choose Commission, then Next.
6. Enter the Item Name which prints on payroll checks and reports, then click Next.
7. Enter an Expense Account, then Next.
8. If you want to set a rate, in the Default Rate window, enter an amount or percentage to calculate this commission.
9. Click Finish.

Once done, you can then add the item to your employee's profile. Check out this article for more details: Set up commission payroll item and reports. 

Let me know if you have follow-up questions by leaving a comment below. I'm always right here to help ensure you're able to pay you employees.

Can this be done in QBO payroll?

Thank you for joining this thread, Admin242.

You can assign a single class to all of your employees in QuickBooks Online (QBO) Payroll, or set different classes for different workers. Also, the class tracking feature is available only in the Plus and Advanced versions.

The option to split your employees' paychecks between classes is currently unavailable. As an alternative solution, you can create another pay type. Allow me to walk you through the process of adding one.

Here's how:

1. Head to the Payroll menu on the left panel and choose Employees.
2. This action will show the list of all your workers.
3. From there, click on the employee's name to see more details.
4. Click the pencil icon for Pay to bring up the Edit employee details screen.
5. Go to the How much do you pay section and tap the pencil icon to open the Pay types page.
6. Then choose the one you wish to add:
   Pay type ▼ for hourly, salary, or commission only. If your employee has multiple hourly rates, select Hourly 2 or Another hourly pay type. You can rename these hourly pay types.
   Common pay types ▼ for overtime, holiday pay, bonus, or commission. 
   Time off pay policies ▼ for paid time off like sick or vacation. Check out Set up and track time off in payroll to set up or change policies.
   Additional pay types ▼ for other pay types like tips, reimbursement, allowances, or fringe benefits.
7. Press the Save button to keep the changes. 

 Once completed, you can now use the newly created pay type when running payroll for the employee. Here's an article that explains how to manage payroll items from your employees' paychecks: Add or change pay type.

Furthermore, these resources provide an overview of when to use the class tracking feature, set up your class list, and create a budget for each segment, to name a few:

• Get started with class tracking 
• Create and manage classes 

Let me know if you have any further questions about the class tracking function or other QuickBooks concerns. I am always available to help. I wish you continued success with your business.
 

I am interested to hear if setting up as commission worked for MelissaC. We also have splits between classes in our non-profit. 

For example, we have 6 employees split by a percentage between classes...

• One salary employee is split a percentage between 8 classes. 
• One hourly employee is split a percentage between 2 classes.
• One Salary employee is split a percentage between 7 classes.
• One salary employee is split a percentage between 3 classes.
• Two Salary employees are split a percentage between 2 classes.

Hi there, @GWNWUPDF.

While waiting for the confirmation coming from @MelissaC, may I ask for a few verifications about your initial inquiry? Have you tried setting up the employee payroll settings based on how the suggestion is discussed in the thread?

I also recommend consulting your accountant for suggestions in setting up your employees' payroll settings. Keep me updated in the comments below. Hope to hear from you as soon as possible. Stay safe!

I am need help with splitting employees between 2 different programs. We have each program set up with its own classes. But we must track our payrolls for each program (grants funded) seperately including PR taxes.

Any suggestions?

We also use QBO. 

I am need help with splitting employees between 2 different programs and grant funds. We must track our payrolls for each grant program seperately, including PR taxes.

Any suggestions on how to seperate the payrolls but at the end of the year ALL the employees wages report together on the w2?

Hello there, usercheryle.

Splitting employees between two different programs in QuickBooks can be done by assigning each employee per class. I'll show you how:

1. Log in to your QBO account.
2. Go to the Gear icon.
3. Select Payroll settings.
4. In the Accounting section, click Edit.
5. In the Accounting Preferences window, scroll down and click Edit under Class Tracking.
6. Choose I use different classes for different employees.
   
7. Choose a class per employee.
8. Hit Save.
   
    

Then, run a payroll. We can use this reference for further guidance: Create and run your payroll.

On the other hand, if you want to run a payroll with a different class each time, we can send this feedback to our Product Development Team. Gear icon> Feedback.

We can visit these articles for additional information when filing your W-2 form and generating reports:

• Learn when and how to submit your W-2 forms to Federal and state agencies.
• Run payroll reports in QuickBooks Online Payroll.

Let me know if you have more concerns about running payroll in QuickBooks. I'll help you in any way that I can. Take care.

Our organization works from Grant funds and we can not co-mingle grants funds. Therefore I need to figure out how to set up employees in PR to be able to track each grant.

Example of what I'm looking at: Staff 1 works 26 hours a month on our CSRAE grant and she will be working 8.5 hours a month on the new DOJ grant, and Staff 2 will be working on both grants as well. So I will be processing 2 payrolls at the end of the month for them. How do I set this up in PR to be able to track and record the separate PR and the PR taxes?
And how can I run my month end reports showing each grant program expenses ?

Thanks for following up with the Community, usercheryle.

To set up your books to track payroll expenses by class, you'll initially need to assign classes to each employee.

Here's how:

1. In the left navigation bar, go to Payroll, then Employees.
2. Choose a worker.
3. From your Employment details screen, click Start or Edit.
4. Add a class for them in the Workers' comp class field.
5. Select Save.

Next, you'll want to set your accounting preferences to track expenses by class.

In regard to a report you can use to show your expenses by class, I'd recommend running a Payroll Summary report by Class.

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

Please feel welcome to send a reply if there's any additional questions. Have a lovely day!

Can you do this in QB online as well and if so how?

Thanks for reaching out back to us, @usercheryle.

Yes, we can assign a class to an employee in QuickBooks Online (QBO) so you can track payroll expenses as provided by ZackE above. However, let me provide you with screenshots to help you follow the steps better.

First, make sure to turn on the class tracking feature. Please note that this is only available in QBO Plus and Advanced.

To assign a class:

1. Go to Payroll.
2. Select Employees.
3. Choose an employee.
   
   
    
4. From the Employment details section, click Edit or Start.
   
   
    
5. In the Workers' comp class field, enter a class.
6. Select Save.
   
   

Currently, the option to assign multiple classes to an employee is unavailable in QBO. That said, I suggest recommending that feature to our product developers by going to the Gear icon and selecting Feedback. 

As a workaround, we can set up different pay types for each worker. Here's how:

1. Go to Payroll and select Employees.
2. Choose an employee and click Edit on the Pay types section.
3. Choose between Hourly, Salary, and Commission only in the Set employee type section and enter an hourly rate.
4. Click + Add pay type to add more and enter an hourly rate for each. You may also rename these pay types.
5. Select Save.

Once done, you may proceed with running payroll for the employee. 

You might also want to set up a direct deposit for your company payroll to avoid the hassle of paying your employees with paper checks.

You can always come back to this thread if you have additional questions about running payroll. You're always our priority. Stay safe!

We do have classes assigned to employees. But we now have to set up another class for the new grant to be able to pay the employees for their hours worked on grant #2. The employees work on BOTH grants and their hourly wages are different for each grant.

I am open to processing 2 seperate payrolls but will I need to create different GL accounts for each such as:      Wages - Grant A and Wages - Grant B? And then how do I insure the company PR Tax liab for each payroll is posted to the correct class (grant)

We have to be able to track each grants expenditures separately. 

Creating separate payroll is a great idea, usercheryle.

Yes, we'll need to create separate accounts for the grants. Here's how:

1. From the Gear icon and then select Chart of Accounts.
2. Select New.
3. Choose the appropriate Account Type and Detail Type.
4. Enter the name.
5. From the Currency drop-down menu, select the foreign currency.
6. Select Save and close.
7. Repeat the process.

To ensure the correct account is assigned to the class, let's set up your accounting preferences. I'll show you how:

1. Go to Settings, then Payroll settings.
2. From Accounting, select Edit.
3. Next to Class Tracking, click Edit.
4. Select how you want to track classes.
5. Choose the account name exactly as it appears in your chart of accounts for each employee.
6. Select Continue, then Done.

Then, change the class on the employee's profile before running payroll.

Once done creating paychecks, I'd recommend running a Payroll Summary report to view the wages, taxes, deductions, and contributions totaled by class. Here's how:

1. Go to Reports, then Standard.
2. Type in Payroll Summary from the search field.
3. Select Customize.
4. In the Workers’ comp class drop-down menu, select the class or classes you want to show in your report. 
5. Click on Run report. 

Please know that I'm always here to help you if you have further questions about class tracking or any other payroll concerns. Just add a post/comment below. Have a great day ahead!

Hello!

I'm a new QuickBooks user, so I may be asking a question that just won't work in QuickBooks.

Would it be easier to create a recurring JE to redistribute from one class other classes at the end of each month?  A JE won't affect anything other than the class.

I realize being able to use more classes per employee would be ideal and easier.  This might be hard to do if you have a lot of employees.

Thank you,

Hello there. Welcome to the Community.

I agree that more classes per employee would be ideal and more convenient. However, QuickBooks Online doesn't have a feature that allows users to assign classes for each employee, as there is only one class for every employee. For now, we suggest submitting feedback directly to our software engineers. They may consider adding it to our future product updates. 

To send feedback:

1. In your QuickBooks Online account, go to the Gear icon.
2. Select Feedback, then type in your suggestion.
3. Click Next to submit.

Moreover, you can create a recurring journal entry, then turn on class tracking to display it in your recurring template. Here's how:

1. Go to the Gear Icon, then select Recurring Transactions under LISTS.
2. Click the New button beside Reminder List.
3. Select Transaction Type, then click Journal Entry.
4. Click OK.

To keep track and manage your classes in QuickBooks Online, check out these articles:

• Get started with class tracking in QuickBooks Online.
• Create and manage classes in QuickBooks Online.

You can also visit this article to learn how to reverse a journal entry to swap the debits and credits of your entries: Reverse or delete a journal entry in QuickBooks Online.

If you need further assistance about recurring transactions or class tracking in QuickBooks Online, don't hesitate to click the Reply button below. We're always looking forward to helping you. Keep safe!

Thank you!

You’re always welcome, @maurice6168.

It’s our pleasure to know we’re able to address your concerns about creating journal entries for the classes for your employees. We want to ensure our users are on top of their business.

In case you have other queries about using classes or creating journal entries, you can always post a reply in this thread. I’ll be around ready to listen and assist you. Have a great day ahead!

Hi, 

I am Using Quickbooks Desktop Premier Accountant and we are an overseas NPO and use classes and jobs for assigning Staff a percentage in payroll. This all works well, but in Dec we paid bonuses (bonus account set up as a bonus account in QB) and we wanted this to go to a different class and job for most employees. The bonus was allocated in the job and class account correctly but it also took a percentage of Health Insurance and Pension with it. We do not want the Pension and Health to be allocated to the Job or Class the bonus is allocated. What do you suggest to do to stop bonuses doing this? We are abroad and don't have payroll taxes to worry about. Would a commission item be better and map it to the bonus account?

Thank you

I am sooooo excited to learn this! I provide custom excel labor reports that are based on Payroll Summaries from QB. I was separating the wages by way of FOH and BOH Payroll items but that did not split the Employer Contributions (taxes). Then we started using Classes and Voila!, that did the trick...until I had a few dual Class employees. You solved the problem by pointing out that I could pay "by earnings item" instead of "entire paycheck". Thank you!!!!!!!

Why list classes under Workmans Comp?

Divina, N

Question on your reply Sept 8, 2020 about splitting PR accounts.

Can something like this be done in QB online?

 

Thank you for providing us details of your concern, @MelissaC.

 

To split the pay between classes for your employees, you can have a 2 line item for earnings with 2 different classes when creating a paycheck. 

 

Here's how to set up a salary payroll item:

 

1. Navigate to the Lists menu, then Payroll Item List.
2. From the Payroll Item drop-down, choose New.
3. Click Custom Setup. Then Next.
4. Choose Wage. Then  Next.
5. Pick Annual Salary. Then Next.
6. Select Regular Pay.

7. Select Next.

8. Enter a name for the salary item that easily identifies it. For example, if you want to track officer wages separately from other employees, enter a name such as "Officer Salary".

9. Hit Next.

10. Select the expense account used for tracking wages. Then tap Finish.

 

Next, you can add the new payroll item to the employee's set up so that it automatically shows when creating paychecks. For the detailed steps, please see this article: Set up payroll item in QuickBooks Desktop. 

 

Then, to split the earnings when creating paychecks let's turn on this feature on the Edit menu: 

 

1. Go to the Edit menu and select Preferences.
2. Select Payroll & Employees.
3. Choose Company Preferences.
4. To split up the earnings only, select Earnings item in the Assign one class per field.
5. Hit OK. 

 

To learn more, please visit this article: Tracking payroll expenses by class.

 

Also, if you want to have the payroll summary report by class, please follow the steps below:

 

1. From the QuickBooks Reports menu, choose Employees & Payroll Reports. And then click Payroll Summary.
2. Pick Customize Report on the report button bar.
3. From the Column drop-down list, choose Class.
4. Make any other changes to the report. Hit OK.