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Simplify payday and set payroll to run automatically on QuickBooks. Explore QuickBooks Payroll
Sonya Vanderford Air
Level 1

Spiffs and Commissions in Payroll

We are on QBD and process payroll through it. We are having issues with the guys getting their paystubs from Workforce regarding the hours. We have spiffs and commissions. The only way the spiffs will pay is if we put a 1 in the quantity. However, on their paystub through Workforce it shows it in their hours as an extra hour. Then we have to prove to them they didn't have additional hours, but spiffs. Also, on our side it shows "Other Items" and that is where we put deductions or reimbursements. For the employees this area shows as "Deductions" and it confuses them when it's a reimbursement. 

What is our work around for these issues?

 

4 Comments 4
Mirriam_M
QuickBooks Team

Spiffs and Commissions in Payroll

You can give your employees a bonus check, Sonya.

 

When running payroll in QuickBooks Desktop (QBDT), the Quantity field on the paycheck appears as Hours on employee paystubs through QuickBooks Workforce.

 

To record spiffs and commissions without them being displayed as regular hours, you can create a bonus check instead. Rather than entering spiffs as hourly payroll items, you can set them up as Bonus or Other Earnings payroll items.

 

Here’s how to set up a bonus item for spiffs:

 

  1. In your QBDT account, go to the Lists menu at the top and select Payroll Item List.
  2. Choose Payroll Item, then click New.
  3. Select Custom Setup, then click Next.
  4. Choose Wage, then click Next.
  5. Select Bonus, then click Next.
  6. Enter the name of the item (e.g., Spiff), then click Next.
  7. Choose the expense account you want the item to track to, then click Finish.

 

Once the bonus item is created, add it to your employees’ profiles by following these steps:

 

  1. Go to the Employees menu at the top, then select Employee Center.
  2. Locate and select the employee you want to adjust.
  3. In the left menu, click Payroll Info, then add the bonus item under the Additions, Deductions, and Company Contributions section.
  4. Click OK to save your changes.

 

After setting this up, you can create a bonus check. For detailed instructions, refer to the article pay employee bonuses under Step 2: Pay out the bonuses. Select the approach that best suits your situation.

 

You may also consult your accountant or tax professional to ensure your taxes are recorded accurately.

 

Feel free to reach out if you have additional questions.

Mirriam_M
QuickBooks Team

Spiffs and Commissions in Payroll

Hi Sonya,

 

I just wanted to follow up to check if the resolution I provided helped resolve your issue.

 

Please let us know if everything is now working as expected or if you’re still experiencing any problems.

 

We’ll be glad to assist further if needed.

Sonya Vanderford Air
Level 1

Spiffs and Commissions in Payroll

We don't want to create separate bonus checks as this would create duplicate work. Almost everyone of our technicians get multiple spiffs weekly. 

Tori B
QuickBooks Team

Spiffs and Commissions in Payroll

Thanks for checking back with us, @Sonya Vanderford Air.

 

I understand creating bonus checks would cause extra work. As my colleague mentioned, I recommend reaching out to your Accounting professional. This way, your accountant can review your books and advise the best way to handle the spiffs based on your business needs. 

 

If you don't have an accountant, don't sweat it. You can find one here in our Resource Center

 

Please feel free to let us know if there is anything else we can assist you with. Have a good one! 

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