Split payroll between 2 locations

I’m glad to see you in the Community, awnllc.

Let me guide you on the right path on how to split your employee’s payroll.

In QuickBooks Onlinel, the Class tracking lets to track income, expenses, or profitability for each part of your business. When using this feature, you can only assign one to each employee.

For detailed information, see the following article: Turn on class tracking in QuickBooks Online. Then go directly to the Turn on class tracking for Online Payroll section.

Since your employee is working on two locations, I recommend consulting with a tax adviser. They can guide you on how to handle this situation. Reaching out to them ensures your payroll records have the correct information.

You can bookmark this article for future reference: QuickBooks Online Payroll. It contains resources that will guide you on how to perform each payroll task. The topics include taxes, creating paychecks, filing tax forms, and other payroll-related activities.

Keep me posted if you have additional questions about managing payroll. I’m more than happy to lend a helping hand. Enjoy the rest of the day.

Class tracking will not work for this. @Rasa-LilaM even says you can only assign one class per employee. You also cannot assign a class to a payroll item. This is a terrible shame since Class Tracking works beautifully everwhere else in QBO.

Using Locations will not work either as you cannot assign different payroll items to different locations.

The closest thing I can find is tracking your payroll by Customer, it's like Job Costing in QBDesktop. You would have to enter each location as a customer. Then you can use time tracking to enter hours for 1 employee and divide the hours by customer. ALL ON ONE PAYCHECK. Then you can run a P&L by Customer to get the breakdown of pay and taxes by Customer. I admit this is not a great work-around, and I have been hesitating to try it. I'm hoping someone will help us find a better way to do this.

Hello there, @ValkyrieAnne. Allow me to chime in and share some information about split employee's payroll in QuickBooks Online.

I understand how important it is to assign different payroll items to 2 locations. I'd recommend sending a feature request directly to our Product Development team. Doing so helps us improve your experience and the features of the program. 

Here's how:

1. Go to the Gear menu and then select Feedback.
2. Type in your feature request in the description box.
3. Once done, click on Next.

Also, the articles shared by my peers about payroll can be beneficial, I encourage you to check  them as well:
 

• Commonly used articles to get started with Payroll
• Set up and assign a new work location

Please tag me in your comment if there's anything else you want to know about running payroll in QBO. I'll be back to help you. Take a safe route ahead.