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smasiello
Level 1

How to invoice as an hourly paid W-2 employee

I am not quite sure where this should get categorized, but here goes:

 

I was contracting for a company and using QBO to invoice them every month.  I have converted to a W-2 employee and am now invoicing them every week based on my hours, but taxes are being taken out.  This means if I invoice them $1,000 for the week, my net pay may be $900.  How do I account for this difference in QBO?   

2 Comments 2
GlinetteC
Moderator

How to invoice as an hourly paid W-2 employee

Hi there, smasiello.

 

QuickBooks Online has a feature to track and bill customers for the number of hours used in a project or activity. This is available in Essentials, Plus, and Advanced version of QuickBooks. Let's ensure to turn this feature on. For time details, you can include the following:

 

  • Employee’s name
  • Hourly rate charged
  • Number of hours billed

To turn on time tracking:

 

  1. Go to the Settings ⚙ icon, then Account and Settings.
  2. From the left menu, select Advanced.
  3. In the Time tracking section, select the Edit (pencil) icon.
  4. Ensure the Make Single-Time Activity Billable to Customer box is checked.
  5. Select Save and close.

Once done, you can enter record time as billable and then add billable to invoice marked them as Billable.

 

To record time billable:

 

  1. Select + New.
  2. Select Single Time Activity or Weekly Timesheet.
  3. Enter the information. You will be able to mark it billable to the customer as well as track your time.
  4. Select Save and close.

You can refer to these links for more information about setting up time tracking and entering billable time in QBO:

 

This information will help you able to track the billable time.

 

You can tag me if you have additional concerns. I'd be glad to assist.

Rustler
Level 15

How to invoice as an hourly paid W-2 employee

@smasiello 

 

If you are a w-2 employee, you do NOT invoice the company for your time working for them.

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