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thronelandscape
Level 1

We are a trucking company that pays some drivers by the hour and some by the mile. Is there a way to set up a payroll item that allows this pay type by the mile?

 
3 Comments 3
RCV
QuickBooks Team
QuickBooks Team

We are a trucking company that pays some drivers by the hour and some by the mile. Is there a way to set up a payroll item that allows this pay type by the mile?

I know a way on how you can track mileage in QuickBooks Online (QBO), thronelandscape.

 

Instead of setting up a payroll item to track mile per driver, we can set up a vendor profile for your employee. Then, create an expense account to track the mileage and reimburse them if your employee paid it using their funds.

 

Here's how you can set up a vendor profile for your employees:

 

  1. Click Expenses on the left side menu.
  2. Choose Vendors.
  3. Hit New vendor.
  4. Enter your employee's info with a unique display name.
  5. Tick Save.

vendor01.PNG vendor02.PNG

Once done, proceed to Step 2 until Step 3 in this article to finish the set up for manual tracking: Manually track mileage for multiple vehicles

 

To learn more about tracking mileage in your Online account, please refer to this article: https://quickbooks.intuit.com/learn-support/en-us/track-mileage/track-mileage-in-quickbooks-online/0....

 

I've got a link here that provides you with articles about managing your business in your trucking company: https://quickbooks.intuit.com/learn-support/en-us/get-started/07.

 

I'm just one reply away if you need a hand with running reports or any QBO related. I'm glad to help.

BSPTLLC
Level 1

We are a trucking company that pays some drivers by the hour and some by the mile. Is there a way to set up a payroll item that allows this pay type by the mile?

if you set up the employee as a vendor for employees paid by the mile, how do you take state and federal taxes out of their paycheck? 

JamesDuanT
Moderator

We are a trucking company that pays some drivers by the hour and some by the mile. Is there a way to set up a payroll item that allows this pay type by the mile?

Hello BSPTLLC,

 

For the employees that are paid by miles, we can recommend to add another pay type. Then, manually calculate the miles and rate when you run payroll for the employee.

Here's how to add another pay type for the employee:

  1. Click Payroll on the left menu and select Employees.
  2. Select the employee profile and click the Edit employee button.
  3. Go to the How much do you pay the employee section and click the pencil icon.
  4. Mark the Other Earnings box and click the pencil icon to edit the name.
  5. Click Done.

When you run payroll, you should be able to enter the amount (mile x rate) in the OTHER EARNINGS column. With that, QuickBooks will calculate the taxes for the employee.

 

Feel free to get back to us if you need anything else.

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