Employees and payroll
I appreciate you for getting back to the thread, missmissySEI. I'll share some additional information about payroll rounding in QuickBooks Desktop(QBDT).
In QuickBooks Desktop, there are two time formats available: decimal (00.00) and minutes (00:00), giving you the flexibility to align with your preferences when entering time on paychecks.
The calculation for each line item on the paycheck earnings table involves multiplying the pay rate by the time worked and rounding to the nearest cent, ensuring accurate payroll processing.
For instance, if your employee worked for 8 hours and 30 minutes at an hourly rate of $20.00, the gross pay amounts to $170.00.
If you enter 8:30 while your preferences are set to decimal, QuickBooks converts it to 8.5 (8 and a half hours). On the other hand, if you enter 8.5 while your preferences are set to minutes, QuickBooks converts it to 8:30 (8 hours and 30 minutes).
Please check the screenshot below for an example of how adding the hourly rate against the preferences format can lead to an incorrect balance:
To check your time entry format, follow these steps:
- Go to Edit, then select Preferences.
- Select the General.
- Choose the Company Preferences tab.
- In the Time Format section, select either Decimal (10.20), or Minutes (10:12).
- Click OK.
After making these adjustments, consider reviewing the resource on setting up employee time tracking to further streamline your payroll operations: Set up time tracking in QuickBooks Desktop Payroll.
In addition, referring to the article on understanding penny rounding differences can provide valuable insights for smoother payroll management: Why do I occasionally notice penny rounding differences?
Should you require further assistance managing your payroll or have any concerns related to QuickBooks, please feel free to get in touch. We're dedicated to providing you with the support and assistance you need.
