Hi, How do I setup prevailing wage pay rates for CA in Quickbooks online? If we are paying standard fringes instead of cash fringes is there anything specific ?

Hello there, JD40958.

Thanks for reaching out about setting up prevailing wage pay rates for California in QuickBooks Online (QBO) and how to handle standard fringes instead of cash fringes. I understand this can be complex, so I’d like to walk you through the process step-by-step.

First, you’ll want to set up hourly payroll items for each prevailing wage classification your employees work under such as Carpenter, Electrician, or General Labor. Be sure to assign the correct prevailing wage rates according to California requirements.

Here’s how to do this in QBO:

1. Go to the Payroll menu.
2. Select Employees.
3. Click on Edit payroll items and hit the New payroll item.
   
   
4. Choose Hourly wage as the pay type.
   
   
5. Enter the name of the classification (e.g., Gen labor Wage).
   
   
6. Click Create to save the payroll item.

If you're paying standard fringes (such as health insurance, pension, or other benefits) instead of cash fringes, you should set these up as separate payroll items to track the fringe benefits properly.

Here's how to set it up:

1. Go to the Payroll menu, and select Employees.
2. Click the Edit Payroll items, hit the New payroll item and select Deduction & contribution.
   
   
3. Enter the details for the fringe benefit (e.g., Health & Welfare, Pension).
   
   
4. Once done, click Create.

These fringe benefit items will track the value of benefits provided but will not add cash to employee paychecks.

Once the prevailing wage and fringe benefit payroll items are created, assign them to the appropriate employees:

1. Go to the Payroll menu and click on Employees.
2. Select the specific employee you want to edit.
3. Under Pay types, select the prevailing wage payroll item and save.
   
   
4. Under Deductions and Contributions, click Edit, add the fringe benefit items, and hit Done.
   
   

After setting up payroll items and assigning them to employees, you can run payroll normally.

You can also check your payroll by running reports to ensure everything is within the correct time period. Please refer to this article for detailed guidance: How to Run Payroll Reports.

Are you looking to improve your QuickBooks experience? Discover Explore QuickBooks Payroll . Our support is tailored to help you effectively manage payroll activities and ensure your accounts remain accurate.

If you need further help setting up or managing your prevailing wage payroll in QBO, please don’t hesitate to reach out. We’re here to support you and provide any additional information you need.