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June 28, 2022
Question

Is there a way to add job costing when doing payroll?

  • June 28, 2022
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1 reply

MariaSoledadG
June 28, 2022

Job costing is great way on how you can perfectly manage payroll. We have another way on how you can do this in QuickBooks, karen-hbshotcret.

 

In QuickBooks Online (QBO), there's a feature that lets you track your labor costs and profitability. You'll want to use projects so you can track labor expenses with your payroll. First you'll have to set up payroll expenses in the chart of accounts. Then, set up your hourly cost rates before you start tracking time. Here's how: 

  1. Go to Business overview and select Projects (Take me there).
  2. Select Hourly cost rate. This opens the hourly cost rate window.
  3. Find the employee and select Add. Or, to edit an employee's rate, select the pencil ✎ icon.
  4. Select the calculator icon to open the hourly cost rate calculator.
  5. Add your employee's hourly wage and employer taxes. Note: If your employee is hourly, QuickBooks fills in their hourly wage and employer taxes for you. If your employee is salaried, enter an hourly rate by dividing their annual wage (including employer taxes) by the number of weeks in a year. Then divide by the average hours worked per week.
  6. Enter any additional employer taxes, workers' comp, or overhead for even more accurate hourly costs.
  7. Select Add to close the calculator.
  8. Select Save to save the hourly cost rate for the employee.
  9. Repeat for each employee. Then select Done to close the hourly cost rates window.

 

Once done, you can now add timesheets and view the labor costs. To give you a complete steps on how this works, I've got this article for your guide: Track Hourly Labor Costs and Profitability By Projects In QuickBooks Online.

 

Additionally, you may want to take a closer look at your payroll information of your business. Use this article for your guide: Run Payroll Reports In QuickBooks Online Payroll.

 

You can always reply below if you have any other concerns about job costing. We're here to get your covered.