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DianeMarieCPA
Level 1

Company contributions set up in enhanced payroll don't allocate across jobs

I have a construction contractor client and the client is running profit & loss report by jobs.  A payroll item is set up for company contributions related to union benefits.  The company contribution is based on hours.  The hours are charged in by job through payroll.  The company contribution does not allocate by hours per job.  It appears to allocate by amount of wages that are charged to a job.  Has anyone seen this type of issue before.  Tried to research and can't find anything on Quickbooks site that addresses this. 

Thank you, Diane M. Spolar, CPA

5 Comments 5
BigRedConsulting
Community Champion

Company contributions set up in enhanced payroll don't allocate across jobs

All allocations of additions, deductions, and company paid taxes and company contributions are done by dollar amounts. 

 

There's no option to allocate by hours.

DianeMarieCPA
Level 1

Company contributions set up in enhanced payroll don't allocate across jobs

Thank you for your reply.  I would have thought the company contribution - which is calculated based on a dollar amount per hour (and calculates in total on a paycheck correctly), would be allocated to the jobs by the hours that were charged in on the payroll.  The allocation by dollar amounts yields at times a difference - especially when there is overtime at 1.7 or double time -  granted not much could be $150 to $200 difference, and the client is trying to get an accurate picture of the profit per job. 

 

Just trying to help the client understand per profit per job with all her union-related costs.

 

Thanks again, Diane.

BigRedConsulting
Community Champion

Company contributions set up in enhanced payroll don't allocate across jobs

I don't understand why this is an issue?  The company costs will be allocated to jobs in the same proportion as they are in the earnings table.

 

If there are multiple rates of pay, then split each rate of pay so that it is allocated to the correct job. 

 

I think then the math works as expected.

DianeMarieCPA
Level 1

Company contributions set up in enhanced payroll don't allocate across jobs

Big Red Consulting - the math doesn't work, and I dug into the detail and it doesn't in this case.

 

The client has to accrue union benefit costs by the hour - say $10.00 per hour the client has to pay the union.  The $10.00 is per hour - so if the mechanic works 45 hours the union benefit is $450.  In Quickbooks when the payroll is processed the 45 hours are divided and captured by customer job.  Ultimately in Quickbooks, $450 of union benefits gets allocated not by hours per job but by gross pay per job.  The job that has the 5 hours of Overtime, gets allocated by Quickbooks more of the union benefit, because the union benefit total of $450 gets allocated ultimately by gross pay per job. 

 

Diane 

BigRedConsulting
Community Champion

Company contributions set up in enhanced payroll don't allocate across jobs

Yes, QB allocates it by pay, not hours worked.

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