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W
WG3
September 1, 2020
Question

Payroll Item vs Service ITem

  • September 1, 2020
  • 1 reply
  • 0 views

In my 'Payroll Items List' hourly wage is tied to GL 52000.

In my 'Service Items List' different services are coded to different GL accounts

 

However, it seems that the payroll follows the 'Payroll Items' coding, even though in the timesheet, I am using the correct service item.

 

How do I correct this so that I can properly classify different types of work?

1 reply

S
ShiellaGraceA
September 1, 2020

Consider me a detective on the case of that GL accounts, @WG3.

 

You can go to the Payroll Item List to correct your payroll item's account. Let me walk you through the steps.

 

  1. Go to Lists, then Payroll Item List.
  2. Double-click your Hourly item, then Next.
  3. Under Expense account, choose the correct GL account you want to use (see image below).
  4. Click Finish.

 

 

With these steps, you're able to properly classify your types of works. You can learn more about editing payroll items at this link here: Edit a payroll item.

 

We also have a guide on how to adjust payroll liabilities in QuickBooks Desktop that I'm sure you'll find helpful. It has details on how you can fix incorrect payroll liabilities.

 

That's all there is to it. Let me know if you have other questions or concerns. I'm always here to lend a hand. Thanks for joining us today and I wish you have a wonderful rest of the week.

W
WG3Author
September 2, 2020

This does not answer my question.  I have the payroll item setup. Let me try to rephrase. The payroll item is called hourly wage and gets coded to expense account 5200. But here is where I have an issue. When I setup Service Items, I am also required to enter a GL code. So far this example:

Employee A, has 10 hours coded to Hourly Wage, Service Item Repairs.

Employee B, has 10 hours coded to Hourly Wage, Service Item Warranty.

 

Because they are both hourly EE's they have the same Payroll Item Code, but they do different tasks, and so have different Service Items. The problem is that both EE's costs are posting to the same GL code based on the PR Item, instead of based on the service item.  How do I correct this?

M
Mark_R
September 2, 2020

Thank you for getting back to us, @WG3.

 

Allow me to provide additional information about the payroll item and service item used for payroll.

 

When you use service items for payroll, the expense account associated with it won't be applicable for any payroll transactions. Thus, payroll expenses will always follow the expense account of the payroll item.

 

To correct this, you can utilize our class tracking feature in QuickBooks Desktop. This way, it'll identify your payroll transactions, whether it's for Hourly wage for Repairs or Hourly wage for Warranty. Here's how:

 

  1. Go to the Lists menu, then select Class List.
  2. From the Class drop-down menu, select New.
  3. Enter the class name.
  4. Click OK.

I'm adding this article for more guidance: Set up and use class tracking in QuickBooks Desktop.

 

Or you can also create different payroll items for each hourly wage. This way, it'll directly report to your associated expense account.

 

Just in case you want to set up and manage payroll schedules, here's an article you can read for more details: Set up and manage payroll schedules.

 

Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day.

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