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J
JLB-9
October 23, 2023
Question

How to stop QuickBooks Payroll from rounding down employee hours?

  • October 23, 2023
  • 2 replies
  • 0 views

I have an ongoing issue where when I review the employee hours (after importing from QBTime) the hours show as whole (for example 8 hours for a day). Then, after I have run payroll and I run a report the hours are showing up as rounded down (for example 7.99667). This changes the gross amount paid to the employees. We frequently pay our employees prevailing wage rates and submit certified payroll, so the hours and amounts they are paid absolutely have to match between QuickBooks, the daily sign in sheets and our certified payroll reports. 

How can I correct the hours prior to submitting payroll so that our employees are paid the correct amount?

    2 replies

    A
    AbegailS_
    October 23, 2023

    Hi there, @JLB-9. I'll share with you information to help you fix the issue that you have with your employee hours.

     

    QuickBooks allows you to customize how hours are rounded, affecting final calculations and payment amounts. 

     

    We can check the rounding preference in your timesheet settings to ensure your employees get the proper pay. 

     

    Here's how :

     

    1. In the left menu, go to Feature Add-ons.
    2. Scroll down to Timesheet Rounding, and select Preferences.
    3. Make your selections, and select Save.

     

    Refer to the following article for more comprehensive information on this topic: Set up timesheet rounding in QuickBooks Time

     

    In addition, I'm sharing an article that offers the advantages of maintaining accuracy, compliance, financial analysis, and comprehensive record-keeping for businesses and employees: Run payroll reports.

     

    If you require any support managing your payroll transactions, don't hesitate to get in touch with me anytime.

    J
    JLB-9Author
    October 23, 2023

    Thank you for your reply and info. This issue is solely within QuickBooks and does not have anything to do with QBTime that I am aware of. We already have our rounding preference set within QBTime and do not want to change them. The issue is that QBT, and the weekly timesheets within QB, will show that an employee has 8 hours of work for a day. I'll pay them, then run a payroll summary report afterwards and the report will show that they were actually paid for 7.99667 hours. I need to see that rounded down amount before I run payroll and be able to fix it so that the payroll summary is actually showing 8 hours worked and their gross pay is for 8 hours.

    Here are the places within QB that I can see the hours prior to submitting payroll:

     

    Employees: Enter Time: Use Weekly Timesheet

    Employees: Pay Employees: Enter Payroll Information (on the summary page, not on the individual employee paycheck page)

     

    In neither of those places does QB show the hours worked with 5 decimal places, so there is no way for me to know that QB is actually going to pay that employee less then 8 hours.

    MariaSoledadG
    MariaSoledadG
    October 23, 2023

    Let me guide you on how to fix this and show the rounded amount when running payroll, JLB-9.

     

    Normally, what shows on the paycheck should match the hours when running the Payroll Summary report. I've tried this on my end and used the same information based on your screenshot:


     
     

     

    However, since it still shows 7.99667 hours when you run the report, you'll have to make sure to update QuickBooks to the latest release so it provides new and improved functionality making it free from errors and at the same time getting the latest tax table update to provide up-to-date, accurate rates and calculations for payroll tax forms. 

     

    After you've performed them, try running the report if it is still showing the incorrect information. Otherwise, use the QuickBooks Tool Hub to fix the common issues. For the best experience, we recommend using Tool Hub on Windows 10, 64-bit. Here's 

     

    1. Close QuickBooks.
    2. We recommend you download the most recent version (1.6.0.3) of the QuickBooks Tool Hub. Save the file somewhere you can easily find it (like your Downloads folder or your Windows desktop). 
      Note: If you've already installed Tool Hub before, you can find out which version you have.
      1. Select the Home tab. 
      2. Select About/What's New to view the version.
    3. Open the file you downloaded (QuickBooksToolHub.exe).
    4. Follow the on-screen steps to install and agree to the terms and conditions.
    5. When the installation finishes, double-click the icon on your Windows desktop to open the tool hub.

    Furthermore, you may experience having issues if the hours are listed in the Weekly Timesheet and you've run payroll but the hours don't display in the payroll fields, check out this article for more details: Fix QuickBooks Time Payroll Hours Display In QuickBooks Desktop.

     

    Let me know if you have any questions when running payroll. The Community is always here to help you anytime. Have a nice day!

    S
    Shannah Walker
    April 24, 2024

    I am having the exact same issue.  Quickbooks support is of no use.  Can you give me a suggestion on how to fix this problem?

    JoesemM
    JoesemM
    April 24, 2024

    We don't want you to feel that way when contacting our support team, Shannah. Allow me to provide some details regarding the time formats to ensure the calculation is accurate when creating paychecks for your employees.

     

    You'll want to look at how your time entries are set up since QuickBooks Desktop has two-time formats: decimal and minutes. These are the time formats followed in QuickBooks Desktop, and you can change the time entered on paychecks or set up sick and vacation time balances. These are the following:

     

    • Decimal: QuickBooks interprets time entries as decimal fractions. 

    When you enter 4:30 while your preferences are set to decimal, QuickBooks converts your entry to 4.5 (4 and a half hours).

    • Minutes: QuickBooks interprets time entries as hours and minutes. 

    When you enter 4.5 while your preferences are set to minutes, QuickBooks converts your entry to 4:30 (4 hours and 30 minutes).

     

    To change and set the format for your time entries, follow the steps below:

     

    1. Go to Edit, then select Preferences.
    2. Select the General view. 
    3. Choose the Company Preferences tab.
    4. In the Time Format section, select either Decimal (10.20) or Minutes (10:12).
    5. Tap OK.

     

    For more details, open this link: Change the time format from decimal to minutes or vice versa in QuickBooks Desktop Payroll.

     

    Here are some resources to help you add sick or vacation pay hours when making paychecks and fix problems with their payroll hours:

     

     

    Please know that I am available to provide further assistance with time entries or any related issues. I'll be more than happy to help.

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