Union Company Contributions

It's nice to welcome you to the QuickBooks Community, @Hartman6711. You'd be glad to know that you can calculate union contributions based on hours worked in QuickBooks Desktop (QBDT), and I'm here to show you how.

In QBDT, we can edit the Union Company Contribution payroll item to change the calculation based on hours worked. Here's how:

1. Go to the Lists menu. Right-click on your existing payroll item and select Edit Payroll Item.
2. Click Next until you reach the Calculate based on quantity window.
3. Select Calculate this item based on hours. Uncheck the Include Sick and Vacation Hours box. 
4. Click Finish.

Furthermore, you can run a Payroll Summary report in QBDT if you want to track your payroll totals, including employee taxes and contributions.

If you need further assistance setting up employee contributions or any payroll-related concerns, please don't hesitate to reach out to us again. We're available 24/7. Have a nice day!

I was able to set that up however, there are 3 union items that are calculated as a percentage of gross pay, .4%, 2.25% etc.  The Sick pay is in the gross but the percentages should not apply to these.  Is there any way to get the percentages to calculate just on actual hours worked not on sick time?

I appreciate you coming back with your further concerns, Hartman.

You can exclude sick leave and vacation from the calculation of your gross salary in QuickBooks Desktop (QBDT) when setting up benefits for an employee.

To do that, let's go over to your Payroll Item List and make some changes.

Here’s how:

1. Go to Lists, then select Payroll Item List.
2. Choose which contribution and double-click on it.
3. Tap Next till you reach Calculate based on the quantity page.
4. Select Calculate this item based on hours.
5. Click Next to choose whether hat to calculate.
6. Once you’re done modifying, hit the Finish button.

Furthermore, information regarding this matter can be read in the following article: Set up and manage payroll items for our insurance benefit plan.

Additionally, I’ll be leaving you this article about sick pay accrual limits in QBDT: Understand sick pay accrual limits.

Don’t hesitate to leave a comment below if you have other questions about setting up benefits for your employees in QBDT. Have a good one!

That did not work.  The percentage calculates using the hours and not the gross pay if I choose calculate based on hours.  As an example, Health Insurance is based of $8.45 per hour worked so that works fine.  Dues is based on say 4% of gross which requires Neither - Select this item if you want this payroll item to be based on a percentage of Net or Gross.  The problem I see is that the gross includes both the sick pay and hourly pay.  The only way I see is to manually enter the actual amounts of percentage items or issue two checks which is not acceptable.

The attached has the percentage items entered manually and is correct.  The one with errors, shows calculations to hours not, gross pay.

[Removed attached file]

Thanks for coming back here, @Hartman6711.

Let me share info about setting up a Company contribution.

In setting up company contribution, whether you select Calculate based on quantity, Calculate based on hours, or Neither, the sick and hourly pay will still be included in the Gross pay. 

What we can do is manually calculate the item amount and never forget to remove the item whenever you run payroll so it will not show in the Net pay. Just like what you did.

For future reference, you can read this article to see a summary report of what you've paid out in your QuickBooks payroll: Create a payroll summary report in QuickBooks.

If you have additional questions about setting up company contributions, feel free to come back here. I'll be willing to lend a hand. Keep safe.

Hello,

Were you able to figure out a solution? I am having the same issue and seriously considering changing payroll software.

Thank you!

I've got your back, @liruzun.

To ensure accurate calculation of your employee's worked hours in QuickBooks Desktop (QBDT), we can remove sick leave pay. This way, the system will accurately calculate the hours worked by your employee.

Here's how:

1. Choose Employees, then Employee Center.
2. Select the employee's name.
3. Click Payroll Info, then choose Sick/Vacation.
4. Enter the number of hours that are currently available for the employee in the Hours available as of mm/dd/yyyy field. Note: This is the total amount of hours available as of the date you add sick or vacation to the employee profile.
5. Select the Accrual period dropdown menu and choose one of the three accrual periods for the sick time listed above.
6. In the Hours Accrued field, enter the number of hours that'll be accrued (based on your selection in Step 5).
7. (Optional) In the Maximum number of hours field, enter the maximum balance of sick hours that the employee can have.
8. If you do not allow hours to roll over to the next year, select “Reset hours each new year?”.
9. Enter the start date of the accrual year.
10. Note: Use January 1 for a calendar year or hire date if accrual happens on an employee's anniversary date.
11. Enter the date that sick time should begin accruing.
12. To specify accrual information for vacation hours, repeat steps 4 through 10 for the Vacation section of the window.
13. Once everything's good, click OK to record your changes.

Furthermore, you can access this article to set up and track your employee track time off in payroll in QuickBooks Desktop.

Also, you can generate payroll reports to view your business's financial business finances and employee' information. You can also customize, print, and memorize these reports.

I'd be happy to help you again if you need more help setting up your employees' time off. Wishing you continued success.