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M
mapco
June 9, 2022
Question

Payroll and time and projects

  • June 9, 2022
  • 2 replies
  • 0 views

We keep track of time spent on projects, but we do not base our payroll off of our time sheets as there is often unaccountable or unbillable time. We pay our employees off of time cards.

When we run payroll we get the screen to adjust hours or delete.

What does this mean? 

We also notice that the entire check is added to a project in the transaction list. How does this happen? Why?

A good explanation of how these are all linked and work together would be helpful.

I have searched and watched videos on payroll and could not find an answer.

I look forward to an answer

Thanks

2 replies

G
Giovann_G
June 9, 2022

Hello, mapco.

 

I'll share information on how payroll, time, and project feature works in QuickBooks Online.

 

You can use the timesheet feature to keep track of how much time each employee spends. When you run payroll, the time data is linked to your employee automatically. This is why, when running payroll for them, you have the option to adjust or delete their time.

 

By doing this, the paycheck will appear as a payroll expense in your project transaction list because the timesheet data is also added to the project. Since your payroll isn't based on timesheet data, I recommend entering time directly on the Projects page to keep track of how much time you've spent on your project. I'll show you how.

 

  1. Click the Projects menu.
  2. Find the project you're working on.
  3. Hit the Add to project button and then choose Time.
  4. Fill in all the necessary information.
  5. Once done, select Save or Save and new.

 

When you're ready to bill their time, click the Create invoice link to track the labor cost for that project.

 

You can also read this article for more insights: Track hourly labor costs and profitability by a project in QuickBooks Online.

 

Additionally, you can add a time tracking user if you want your employee to enter their own time. Check out this resource for your future reference: Turn on and set up time tracking in QuickBooks Online.

 

You're always welcome to add any details if you have further questions about payroll, time, or project features. I'll be here to help you.

M
mapcoAuthor
June 10, 2022

Thank you for the reply and I get most of it except:

This is why, when running payroll for them, you have the option to adjust or delete their time.

Since I don't need to adjust the time, should I select delete? What am I deleting? Am I deleting the time they entered for customers or projects? The whole time sheet?

This is very ambiguous and hard to figure out what option is correct.

We enter our time on a weekly time sheet, entering the customer or project, along with the service item and if it is billable or not as we often work on more then one project during a day. Entering in each individual project is too time consuming. (This should not make a difference to the question)

Also in projects in the overview it has the cost per employee listed and these numbers appear correct, but in the transaction list the entire check amount is listed. I don't quite understand this. Is it listed because that is where the numbers in the overview page come from??

I look forward to your reply and thanks for your help

Cheers

M
MadelynC
June 10, 2022

I’m here to help you understand how payroll, time, and projects are linked in QuickBooks, @mapco.


The time data will automatically be linked to your employee if you add pay items to a project timesheet first before creating the paycheck. If you don’t want to follow the timesheet hours when running payroll, you can delete them.


The Project Overview displays the total income and expenses per job as well as the total time allocated to the job and the expected profit margin. While Transaction list breakdown all your estimates, invoices, billable expenses, and bills related to this project.


You can read these resources to learn more about projects and how to keep everything running smoothly:

 


You can get back to us anytime if you have other questions or concerns about your projects and payroll. We’ll be here to help. Keep safe always!

T
tysa_van
October 20, 2022

Did you ever get a resolution for this? I am working through the exact issue. We are a law firm and we have Attys who enter billable time. Though they are salary and no part of their pay is dependent or linked to projects. But here we are with Pay Checks on a projects. We just migrated to QB Payroll in August of this year. the issue is only happening with two attorneys, the two who work billable projects, and they have paychecks scattered all over. 

 

Help desk after 2:40h only solution is to delete all invoices where they have time tracked and then "it should" remove the paycheck from the project...

 

I'm hoping  you found a better way

 

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