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Best answer October 08, 2018
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Hello Andres,
I appreciate you clarifying things. I’d be happy to share the steps in recording pay raise for a salaried type of employee.
There’s a bit of a change in the process of correcting and giving the raise to your salaried employee. Regardless, you can still opt to either create a special paycheck for the raise amount or add it to the employee’s paycheck on the next payroll run.
You’d need to first create an Addition type of Payroll Item specifically for the raise amount. Then, add it in the Additions, Deductions and Company Contributions table of the employee’s Payroll Info section.
To create a new payroll item:
- Go to Lists at the top menu bar, then select Payroll Item List.
- Right-click anywhere, then choose New.
- In the Select setup method prompt box, pick Custom Setup, and Next.
- Choose Addition in the Payroll item type dialog box, then Next.
- Enter a relevant name, such as Employee Raise, and Next.
- Pick an expense account, Payroll Expenses is the most commonly used for this, and Next.
- Select Compensation as the Tax tracking type, then Next.
- Make sure all taxes affected by this have checkmarks on them and click Next until Finish.
To add it:
- Go to Employees at the top menu bar, then choose Employee Center.
- Locate and right-click the employee’s name, and pick Edit Employee.
- Select Payroll Info.
- Under the Additions, Deductions and Company Contributions table, choose the payroll item you’ve created, and enter the amount.
- Click Ok (see screenshot 1).
After setting up, you’ll now be able to give the raise to your employee depending on which option you want to use.
To create a special check
- Go to Employees at the top menu bar, select Pay Employees, then Unscheduled Payroll.
- Make sure that the Pay Period Ends date is the same as the original check.
- Put a checkmark before the name of the employee.
- Click the Open Paycheck Detail button, then Continue.
- Under the Earnings item section, remove the rate for the salary amount.
- In the Other Payroll Items section, enter the Employee Raise Payroll Item and the entire raise amount.
- Click Save and Close (see screenshot 2).
To add the raise amount in the next payroll run:
- Create the employee paycheck as how you normally do.
- In the Preview Paycheck screen of the employee, go to the Other Payroll Items section, enter the Employee Raise Payroll Item and the entire raise amount.
- Click Save and Close (see screenshot 3).
Once done, remove the employee raise payroll item from the employee’s payroll info section. Then make sure you’ve changed his annual salary rate to the new amount (see screenshot 4).
That’s it! Your employee will now receive the increase on his pay without messing up your taxes. If you have questions with the process, feel free to update this thread.
Have an awesome week ahead!
It’s nice to have you again here in the Community, Andres.
I can help make sure your employee can get the raise on his paycheck.
Since the paycheck has been deposited, there isn’t a need for you to edit it. This is to avoid messing up the taxes taken out from the check.
I have two suggestions you can choose from to ensure that your employee can still receive the raise. You can either create another paycheck specifically for the raise amount or add it to the employee’s paycheck on the next payroll run.
To create another check:
- Go to Employees at the top menu bar, select Pay Employees, then Unscheduled Payroll.
- Make sure that the Pay Period Ends date is the same as the original check.
- Put a checkmark before the name of the employee.
- Click the Open Paycheck Detail button.
- Under the Earnings item, select the Wage Payroll item type for the employee.
- In the Rate column, enter the entire raise amount.
- Put one (1) in the Hours column, then click Save and Close (see screenshot 1).
To add the raise amount in the next payroll run:
- Create the employee paycheck as how you normally do.
- In the Preview Paycheck screen of the employee, go to the Earnings table, then add the same wage payroll item in the second line.
- In the Rate column (second line), enter the entire raise amount.
- Put one (1) in the Hours column (second line), then click Save and Close (see screenshot 2).
That’s it! Rest assured, any of these options will give your employee the pay raise.
If you have other concerns, feel free to fill me in. I’ll be around.
Hello Andres,
I appreciate you clarifying things. I’d be happy to share the steps in recording pay raise for a salaried type of employee.
There’s a bit of a change in the process of correcting and giving the raise to your salaried employee. Regardless, you can still opt to either create a special paycheck for the raise amount or add it to the employee’s paycheck on the next payroll run.
You’d need to first create an Addition type of Payroll Item specifically for the raise amount. Then, add it in the Additions, Deductions and Company Contributions table of the employee’s Payroll Info section.
To create a new payroll item:
- Go to Lists at the top menu bar, then select Payroll Item List.
- Right-click anywhere, then choose New.
- In the Select setup method prompt box, pick Custom Setup, and Next.
- Choose Addition in the Payroll item type dialog box, then Next.
- Enter a relevant name, such as Employee Raise, and Next.
- Pick an expense account, Payroll Expenses is the most commonly used for this, and Next.
- Select Compensation as the Tax tracking type, then Next.
- Make sure all taxes affected by this have checkmarks on them and click Next until Finish.
To add it:
- Go to Employees at the top menu bar, then choose Employee Center.
- Locate and right-click the employee’s name, and pick Edit Employee.
- Select Payroll Info.
- Under the Additions, Deductions and Company Contributions table, choose the payroll item you’ve created, and enter the amount.
- Click Ok (see screenshot 1).
After setting up, you’ll now be able to give the raise to your employee depending on which option you want to use.
To create a special check
- Go to Employees at the top menu bar, select Pay Employees, then Unscheduled Payroll.
- Make sure that the Pay Period Ends date is the same as the original check.
- Put a checkmark before the name of the employee.
- Click the Open Paycheck Detail button, then Continue.
- Under the Earnings item section, remove the rate for the salary amount.
- In the Other Payroll Items section, enter the Employee Raise Payroll Item and the entire raise amount.
- Click Save and Close (see screenshot 2).
To add the raise amount in the next payroll run:
- Create the employee paycheck as how you normally do.
- In the Preview Paycheck screen of the employee, go to the Other Payroll Items section, enter the Employee Raise Payroll Item and the entire raise amount.
- Click Save and Close (see screenshot 3).
Once done, remove the employee raise payroll item from the employee’s payroll info section. Then make sure you’ve changed his annual salary rate to the new amount (see screenshot 4).
That’s it! Your employee will now receive the increase on his pay without messing up your taxes. If you have questions with the process, feel free to update this thread.
Have an awesome week ahead!
Hey there, @jenn86.
I appreciate you joining this conversation for providing the details. Allow me to chime in and share information about adding a raise to an employee's paycheck(s) in your QuickBooks Online (QBO) with Full Service Payroll.
Since you mentioned that the Direct Deposit is scheduled tomorrow, the paycheck(s) can still be edited if their status shows Not processed yet. Let me show you how:
1. Go to the Workers menu at the left pane, then Employees.
2. Click the employee's name, then go to the Paycheck Lists tab.
3. Check the box beside the Pay Date, then select Delete and Yes.
Once done, go back to the Employee list and recreate them. On the other hand, if the status shows Processed, I suggest contacting our Support Team for further assistance. Here's how to reach them:
1. Click the Help (question mark) icon at the top.
2. Select Contact Us at the bottom.
For additional information, check out this article for further guidance: Edit a payroll paycheck.
That should do it. Please reach out in the comments to let me know how it goes or if you have any follow-up questions. I'm always here to help. Have a good one.
