Standard mark-up on payroll and Remove payroll taxes from a project

Hi there, chaya143.

I'm here to share details about removing payroll taxes from a project and adding mark-up on payroll.

 In QuickBooks Online Payroll, the payroll expenses will only be posted to your project after you've run payroll. It includes employee wages and other direct costs like taxes and workers' comp insurance. Therefore, were unable to remove taxes in the projects.

When it comes to creating a standard fringe rate for all employees in QuickBooks, there are only a few preset fringe benefits available to choose from. I've listed these options for your reference below.

• S-corp medical
• Group Term Life Insurance (GTLI)
• Clergy housing
• Personal Use of Company Car (PUCC)
• Health Savings Account (HSA)
• Allowance

Currently, we don’t support other fringe benefits in QuickBooks Online Payroll. For more details, please see this article: Add Fringe Benefits to Paychecks.

Should you encounter any difficulties and uncertainties while running payroll or working with other areas, please don't hesitate to reach out to me again. Your seamless experience is my top priority.

I’m not trying to create a fringe rate in payroll, I just want to add additional mark-up above actual payroll to the projects that I am billing for.   Before using time I could set a rate that included fringe and just enter employee time with that rate on the project manually.  Why can’t I mark-up payroll costs in projects the same way if not using QuickBooks timesheets?  If not possible, this seems like a major downfall of using QuickBooks to track time for projects.

Hello there, @chaya143.I understand the importance of managing markups in QuickBooks Online (QBO). I'll ensure to provide some relevant information about your concern.

Yes, you're right that you can set a rate that includes fringe and enter employee time with that rate on the project manually using QuickBooks Time since its feature is specifically for tracking time. However, each QuickBooks product has different features available, so there will be times when some features are not available on other products. That said, the option to enter additional markup above the actual payroll to the projects is unavailable. You'll want to continue doing it with QuickBooks Timesheets.

 Also, know that the markup feature in QBO is used only with billable expenses on the vendor side.

You can check out these articles for more details on managing projects in QBO:

• Create and manage projects in QuickBooks Online
• Track hourly labor costs and profitability by project in QuickBooks Online

Moreover, I'll be leaving you these articles in case you want to review or get a closer look at your business' finances:

• Run reports in QuickBooks Online
• Run payroll reports

Keep me posted if you have clarification in managing projects and time in QuickBooks. I'll always be here to assist you. Have a great business!