Cost of Exempt employees are not showing up in job costing

Hello there, g-rochlin.

Let me share information regarding the ability to reflect the cost of exempt employees in job costing.

In QuickBooks Online, you won't be able to track the hours recorded in the payroll expense for exempt/salaried employees for the project since they have fixed hours.

As a workaround, you can enter her hourly rate by dividing their annual wage (including employer taxes) by the number of weeks in a year. After that, divide it by the average hours worked per week. Here's how:

1. Head to Business Overview, then Projects.
2. Select the Hourly cost rate, which opens the hourly cost rate window.
3. Locate the employee and click Add or edit an employee's rate by selecting the pencil icon.
4. Utilize the calculator icon to open the hourly cost calculator.
5. Provide your employee's hourly wage and employer taxes.
6. Enter any additional employer taxes, workers' comp, or overhead for even more accurate hourly costs.
7. Click Add to close the calculator, Save, and then repeat the process for each employee.
8. Once finished, press Done to close the hourly cost rates window.

For more information, you can refer to this article: Track hourly labor costs and profitability by project in QuickBooks Online.

On the other hand, consider reviewing these resources to help further manage projects within the program:

• Invoice customers for project expenses in QuickBooks Online
• Add project estimate summaries to a progress invoice in QuickBooks Online
• Add existing invoices to projects in QuickBooks Online

Inform us in the Community if you have questions and clarifications related to job costing or any concerns with QuickBooks Online. We're here to guide you in performing different business tasks efficiently.

Hi Kimberly,

Thank for getting back to us.  Please acknowledge that QBO made a change back in mid-February regarding pulling out the hours from exempt employees and allocated them to specific projects.  If so, it would have been great to be notified.  We have completed the setup as per what was sent to us and will see what happens during the next payroll cycle.  Of more importance to us is the three payrolls that were not allocated to the specific projects that need to be.  Perhaps you can give a work around since we this is creating a huge amount of addition work for us to manually adjust to spreadsheets when we pay for this service.  Perhaps coming up with an adjustment for the three cycles would be a place to start other than it cannot be done.  Please refer to our case numbers as to the amount of time this has taken us to get close to the answers.