QuickBooks Payroll Tip - Changing Hourly Wage Mid-Week

Often QuickBooks users have to modify the hourly wage for staff and their OT rates as properly, in the middle of a spend week. This often occurs when a firm has union staff and have to do this for due to an hourly wage pay scale boost which can also require that they require to adjust some of the corporation paid union fringe benefit amounts as properly.

There are a couple of ways that you can accomplish this when employing QuickBooks, still, because you are dealing with union hourly wage rates, it honestly depends on:

1. Are you still working on contracts that will use the existing hourly rates of spend and fringe benefit amounts?
2. Are the new hourly wage rates for contracts that you start in between now and the subsequent pay scale increase?
3. Are the new hourly wage rates powerful for all existing projects as well as any new contracts between now and the subsequent pay scale raise?

Some persons would merely suggest that you use the existing Payroll Wage Item and manually split out the number of hours utilizing two distinctive hourly wage rates when you build the paycheck.

Other consumers would recommend that you Edit each and every QuickBooks Employee Record, going to the Payroll & Compensation Info tab and in the Earnings box pick the current Payroll Item Wage name and assign the new hourly wage rate - this provides you two instances of the identical Payroll Wage Item with two distinctive rates of spend assigned to it - QuickBooks will permit this (personally I think it is a flaw in the program) even though QuickBooks will not be able to identify which rate is should certainly use when you choose the payroll item in Timesheets and/or paychecks.

I do not recommend employing either of the above approaches as they are too error prone and do not leave you a dependable means of tracking what an employee was earning during a distinct period of time.

The approach that I advise is to develop new Payroll Wage Items and Business Contribution Items with the applicable rates of spend and hourly benefit amounts. When you have designed these items, edit every single employee and add the new items to their Payroll & Compensation Info tab. When you enter time in the Weekly Timesheets, opt for the old payroll item/spend rate for the applicable days and then pick the new payroll item/spend rate when they become useful.

Setting up QuickBooks in this manner makes the program work for you, instead of you having to continually don't forget to manually make the spend rate alterations.

Advantages contain:

• A clearly visible audit trail for your Union Fringe Benefit Reports.
• Accurate pay checks.
• Much less stress.

Author's Note:

Having to manually produce new payroll items AND then update 54 employee records with new payroll wage items and rates of pay is a time-consuming method as you have to do each and every payroll item and employee one at a time.

Check out , a QuickBooks integrated application designed particularly to automate this process.