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KVallee
Level 1

Quickbooks Time and Payroll Class Tracking

We are a nonprofit using Quickbooks Premier and thinking of switching to QBO.  We use Paychex and use Journal entries to allocate payroll costs to Programs/Funds (classes and subclasses) each pay period using an Excel workbook.

 

We would like to avoid all of the Excel workbook allocations by using Quickbooks Payroll, timesheets (Quickbooks Time) and class tracking in order to have each employee's payroll costs to be allocated based on their timesheet. (E.g. Employee1 works two weeks full time, of which 20 hours was for Program (class) A and the remaining 60 hours was for Program B.)  Will all of the payroll costs allocate onto the P&L (Statement of Activities) based upon the timesheet (25% Program A and 75% Program B), including employer payroll taxes, employer-paid health premiums, employer-paid 401k Profit Sharing, and work comp?

 

More importantly, will it allocate correctly if the employee is NOT hourly but rather salary?  If it can allocate to each program (and even Grant, using Customer/Job) based on the timesheet, we don't have to create such elaborate allocation tables in Excel.

 

Thanks for any help you can provide.  I cannot find this anywhere on the interwebs.

6 Comments 6
MonicaM3
Moderator

Quickbooks Time and Payroll Class Tracking

Hi there @KVallee.

 

Thanks for reaching out to the Community for information about how QuickBooks Online, QuickBooks Time, and integration works. I’d be happy to give you some insight.

 

QuickBooks Online and QuickBooks Time work really well together. For information about timesheet setup with QuickBooks Online and QuickBooks Time, check out this article: Timesheet setup: QuickBooks Online and QuickBooks Time

 

Salaried employees can definitely use timesheets to track projects/jobs. You would map them in QuickBooks Time the same way you would map an hourly employee.

 

For information on how to turn on class tracking in QuickBooks Online, here is a great article: Set up class tracking in QBO

 

Once you have everything set up, you can run a P&L by Class from the reports menu in QBO.

 

Let me know if you have any additional questions about integration or anything else. I’d be happy to help.

 

Enjoy your day!

KVallee
Level 1

Quickbooks Time and Payroll Class Tracking

Thank you!  My question is unfortunately a little difficult to answer since we don't have QBO of Quickbooks Time yet, and we need to know for sure it will allow us to allocated percentages/hours on spreadsheets before we decide to migrate from QB Desktop Premier for Nonprofits to QBO with Quickbooks Time and Full Payroll.

 

How would you assign costs to a job and/or project for a salaried person?  Would you do it by allocating hours even though they are salaried, or would it be done using percentages.  Are there any videos or links that show specific screenshots of how class and job tracking is accomplished in Quickbooks Time?

 

Or is there a sandbox version where you can try out Quickbooks Payroll with the timesheets?

 

Thanks again.

MonicaM3
Moderator

Quickbooks Time and Payroll Class Tracking

Welcome back @KVallee.

 

For a salaried person, in a timesheet, you would still allocate hours to the project.

I completely understand wanting to make sure you will have everything you need before making a big transition. I’ve been there.

 

Here is a link to a Sandbox version of QuickBooks Online: https://developer.intuit.com/app/developer/qbo/docs/develop/sandboxes

 

While QuickBooks Time doesn’t have a Sandbox, you can utilize the free trial option for 30 days to check out the functionality. You can get that here: https://quickbooks.intuit.com/time-tracking/

 

You may also be interested in speaking with one of our Business consultants who can answer particulars for your unique business needs. They can be reached at 1..888.836.2720.

 

As always, I’m happy to help with any additional questions. I definitely want to make sure you can make the most informed decision for your situation.

 

Take Care!

fahadanmar
Level 1

Quickbooks Time and Payroll Class Tracking

I'm experiencing a similar issue. Any luck resolving?

Mich_S
QuickBooks Team

Quickbooks Time and Payroll Class Tracking

Thanks for joining the thread, @fahadanmar.

 

I've got some insights to share about allocating hours to a project and how QuickBooks Online, QuickBooks Time, and integration works.

 

QuickBooks Online and QuickBooks Time complement one other really effectively. Check out this post for further information on setting up timesheets with QuickBooks Online and QuickBooks Time: Setting up a timesheet in QuickBooks Online and QuickBooks Time

 

In a timesheet, a salaried employee would still allocate hours to the project.

 

Let's start by calculating each worker's hourly cost rate. After that, use hourly cost rates to add project timesheets.

 

If you're using QBO Payroll, follow these:

  1. Click on + New.
  2. Choose Weekly Timesheet.
  3. Choose your employee and the week you’re entering time from the drop-down menus.
  4. Click on the project from the Choose a customer or project ▼ drop-down. This will tag the timesheet to the project.
  5. Fill out the timesheet. You can modify a worker’s pay rate from regular pay to other rates as needed on the timesheet.
  6. You can check the Billable (/hr) box and edit the billable rate (the price you’re charging your customers) if you plan to invoice your customer for specific project hours.

 

If not, check out and follow step 5 so you can calculate your hourly time cost.

 

For future use, check this link about the list of different payroll reports you can access: Run payroll reports.

 

 

Just hit the Reply button if you have other concerns with payroll or QuickBooks. We're here to back you up. Keep safe!

Flipping sykesville
Level 3

Quickbooks Time and Payroll Class Tracking

I have been trying to utilize this exact feature for a year now to no avail, and customer service seems incapable of understanding and directly answering the question. 
while I confirmed w multiple people that this was an integrated feature in QBO and time sheets before making the painful and expensive switch, NO ONE seems to be able to help me integrate my different project (class) payroll and payroll tax expenses to the appropriate classes in QBO. I have wasted countless frustrating hours to no avail. I expect someone from QBO and time sheets to understand the situation, and speaks English as their first language, as I’m sure it’s a common concern for a biz owner, and contact me directly to resolve this nightmare. Thank you

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