Hello there, tcossey. Let me elaborate on some details of how labor costs work in QuickBooks Online.

In QuickBooks Online, if you have salaried employees, the hours recorded in the payroll expense of the project will not be tracked due to that salaried employees have fixed hours.

If you want to make your project accurate project cost for profit margin, you can edit your employee information to hourly instead of salary. This way both your time activity total cost and total cost of the project will be accurate.

Here's how:

1. Go to Payroll, and select Employees.
2. Click the employee.
3. In the Pay types, select Edit.
4. Click the Salary drop-down and choose Hourly.
5. Select Save.

For future use, here's an article on running reports to view useful info about your business and employees: Run payroll reports.

Should you need additional assistance in managing your payroll, feel free to include them in the comments below. Keep safe!

@MelroseV  RE: In QuickBooks Online, if you have salaried employees, the hours recorded in the payroll expense of the project will not be tracked due to that salaried employees have fixed hours.

What? Salaried employees do not have fixed hours. Not on this planet, anyway.

I am having the same issue and changing the salaried employee to hourly will not solve the problem if you also use the payroll module as I do. When it comes to tracking costs for projects the weekly timesheet should do this regardless of whether an employee is hourly or salaried. The program used to track it. 

Hey there. @nh3services. 

I appreciate you chiming in on this thread. 

Since you're having the same issue and none of the steps worked from above, I recommend contacting our Customer Support Team for further assistance. Here's how: 

1. Go to the Help ? icon in the top right-hand corner. 
2. Press the Contact Us button. 
3. Enter your question and tap Let's talk. 
4. Scroll down and choose to Get a callback. 

Keep us updated on how the call goes. I'm only a post away if you need me again. Take care!