Skip to main content
J
JP41
June 27, 2022
Question

Payroll

  • June 27, 2022
  • 1 reply
  • 0 views

An employee was given a raise to start in the middle of a pay period. The raise is effective July 1. The pay period extends from June 27 thru July 10.

1 reply

DivinaMercy_N
DivinaMercy_N
June 28, 2022

I'm glad to see you here in the Community, @JP41. I've come here with the steps to help you set up your employee mid-pay period. Follow along below to get this done right away. 

 

In QuickBooks Desktop (QBDT), the pay period automatically defaults based on the payroll schedule created. To fix the rate of your employee, you'll have to manually update the salary amount. 

 

Additionally, the program will depend on the salary amount you've set up for that employee.

 

I'll guide you on how:

 

  1. In your QBDT company, navigate to the Employees menu and choose Employee Center.
  2. Click the name of the employee from the Employee Lists.
  3. Next, find and choose the paycheck.
  4. Select the Paycheck Details.
  5. From the Review Paycheck window, edit the Rate to update the salary amount.
  6. Review the details, then click OK once done.

 

You'll also want to set up a scheduled payment or liability for your employees in QBDT. Please see this article for the detailed steps: Set up and Pay Scheduled or Custom (unscheduled) Liabilities.

 

If you have any other queries about managing your employee paycheck, be sure to let us know. I’m always ready to lend a hand. Have a wonderful day ahead and keep safe.

J
JP41Author
June 29, 2022

Thanks for you help but I guess I wasn't clear on my problem. The rate of pay for our employee is changing in the middle of the pay period. He is an hourly employee and we can pay X rate for the number of hours he worked at his original rate and X rate for the number of hours worked at the new rate. If I do it this way will the taxes (federal and state WH) still work out correctly?

C
Charies_M
June 29, 2022

Thanks for coming here today,  JP41.

 

I appreciate the clarifications you added to help me better understand your concern. 

 

Based on your scenario, you'll want to create another payroll item for the new rate. This is what you will be using whenever you want to apply the new rate for your employee. 

 

Here's how to create a payroll item:

 

  1. Go to Lists, then select Payroll Item List.
  2. Select Payroll Item, then select New.
  3. Click Custom Setup, then select Next.
  4. Select Wage, then select Next.
  5. Choose Hourly Wage. Select the appropriate pay type.
  6. Click Next. Enter a name for the pay item (if you have various types of regular pay, you can differentiate them with the name), then select Next.
  7. Choose the Expense account where you want to track wages.
  8. Select Finish.

Feel free to read through about creating payroll item through this link: Set up an hourly wage payroll item

 

When you're ready to apply the new rate, you can just visit this article. This will give you the steps on how to create payroll checks in QuickBooks Desktop: Create and run your payroll.

 

Regarding your question of whether the Federal and State taxes will be correct, the answer is yes. QuickBooks automatically calculates your employee's taxes based on the information entered on the paycheck.

 

You may find the following articles helpful in case payroll items/taxes are calculated incorrectly:

 

The Community is always open whenever you have other questions while working on payroll. Have a good one.

Terms & ConditionsAccessibility statement