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ExcavatingUser
August 29, 2022
Question

Add misc labor to employee check to makeup for wage increase not made in last paycheck

  • August 29, 2022
  • 1 reply
  • 0 views

I have a situation where a union employee's wage increased but I was not notified until after the check was cut last week.  Now I need to make-up that dollar difference on this week's check and have only taxes taken out, no extra fringe contributions.  So let's say his old rate was $5 and now his new rate is $10.  All the contributions were already made for those 40 hours, but I need to add $200 extra to his check and taxes should be taken out.  How would I accomplish that?

1 reply

AlcaeusF
AlcaeusF
August 29, 2022

I'm glad to see you dropping by here in the Community, @ExcavatingUser.

 

I appreciate your detailed explanation about the employee's payroll. I'm here to help you add the dollar difference from the previous paycheck in QuickBooks Desktop.

 

I recommend creating an Addition type payroll item to provide a raise or wage increase. You can either enter a special paycheck for the amount or add it to the employee’s next payroll.

 

Start by going to your Payroll Item list and create an Addition type item for the raised amount. Once done, you can add it to the Additions, Deductions and Company Contributions table of the employee’s Payroll Info section.

 

Here's how to create a payroll item:

 

  1. Go to Lists at the top menu bar, then select Payroll Item List.
  2. Right-click anywhere, then choose New.
  3. In the Select setup method prompt box, pick Custom Setup, and Next.
  4. Choose Addition in the Payroll item type dialog box, then Next.
  5. Enter a relevant name, such as Employee Raise, and Next.
  6. Pick an expense account, Payroll Expenses is the most commonly used for this, and Next.
  7. Choose the Tax tracking type, then hit Next.
  8. Make sure all taxes affected by this have checkmarks on them and click Next until Finish.

 

If you're unsure of the tax tracking type, consult an accountant for expert advice. Choosing the right one is important to ensure the correct taxes are deducted.

 

When you're ready to create the next payroll, add the new item. This way, it'll include the missing amount from the previous paycheck. Your employee should receive the increase on his pay without messing up her taxes.

 

In QuickBooks Desktop, you can also make a bonus payroll item to pay a bonus paycheck. In case you need this in the future, I've attached the article for your reference: Create a bonus payroll item in QuickBooks Desktop Payroll.

 

If you have questions about the process, feel free to update this thread. The Community and I are available 24/7 to help you out. Take care always.

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