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elec246
Level 1

Change in employee hourly rate causes retro-active change in pay.

Hey all, we have been having a problem with our timesheets when changing an employee's pay rate. We are electrical contractors, and we use our timesheets to do cost analysis on a job when the job is complete. However, if we change an employee's pay rate during the time when the job is still active, t-sheets will retroactively change the pay rate of the employee. For example, if an employee was being paid $20/hour for the first 6 months of a job, and we raise them to $25/hour for the last 6 months of the job, when we do our cost analysis at the end of the job it will show that the employee was being paid $25/hour for the entirety of the job. This makes cost analysis very difficult; I was wondering if anyone else has encountered this issue and had a solution.

1 Comment 1
IrizA
QuickBooks Team

Change in employee hourly rate causes retro-active change in pay.

Hi there, elec246. Allow me to explain why the changes in your employee's hourly rate cause retroactive changes in pay.

 

In QuickBooks Time, the change in an employee's pay rate affects the job costing report for all time, which means it includes the past. This explains why as you change the pay rate of your customer and run a report, you'll see in the report their time is being multiplied with the new rate that you've input. 

 

Since you want to use a feature that enables you to change the paid hour but won't affect the past, I recommend sending feedback so that our developers might consider your feedback.

 

Here's how: 

 

  1. At the bottom, select Suggest an idea.
  2. Enter your idea, then select Post a new idea or Vote for an existing idea.
  3. Optional: Select a category.
  4. Describe the idea, and select Post idea.

 

In addition, I've got some materials that you can scan whenever you want to dig deeper or want to submit a feedback in QuickBooks Time:

 

If you have further concerns regarding other questions, please comment below. Stay safe. 

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