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OlympicCabinetry
April 27, 2022
Question

Project Payroll Expenses when employees are paid Piece Rate as opposed to an Hourly Rate

  • April 27, 2022
  • 1 reply
  • 0 views

Hello!  I have field installers that are paid PIECE RATE as opposed to an hourly rate of pay.  I also have field and shop employees that are paid hourly.  The hourly employees are simple, it's the Piece Rate employees that are a challenge.  To make it more challenging, some of our installers are paid both Piece Rate and/or hourly (depending on the work).  I have to track hours worked for the Piece Rate paid employees due to wage/hour laws and we offer benefits so we have to track eligibility.  I cannot figure out how to use timesheets for Piece Rate collection from field employees - and apply the payroll expense (including ER expenses such as ER taxes & WC) to the applicable Project.  I have a T&A application that I use for scheduling and time collection - along with the ability (with use of custom fields) for the installers to add their piece rate pay for the day (it varies depending on the job).  What I do not have is a way to account for those labor dollars (and ER expenses) on the Project to track actual costs per job.  Any ideas or help is greatly appreciated. 

1 reply

katherinejoyceO
katherinejoyceO
April 27, 2022

Hello there, @OlympicCabinetry. 

 

Thanks for posting in the Community today. You can use the Project feature in QuickBooks.

 

It helps you the calculating of costs connected with a project. To get started with job costing in QuickBooks, you'll need to change your settings to monitor spending by a customer. 

 

Then, update your customer list, products, and services settings, and then send estimates and bills to your clients.

 

See thiese articles for additional details:

 

 

Get back to this post if you have other concerns. I'm always around to guide you.

 

 

O
OlympicCabinetryAuthor
April 27, 2022

Thank you for your response - but it does not address my question.  I need to track PIECE RATE, not hourly and there is no way to do that easily.  I am trying to obtain information about T-Sheets (to see if it supports Piece Rate), but I am not getting very far.

 

The Time Activity tracking in Project only has Cost Rate/Hr and Time worked - there is no way to add Piece Rate - or even a flat dollar amount.  I can run reports by Hours or Payroll Expenses, but the only way I have been able to get payroll expense data is with manual JE, which takes a considerable amount of time,

R
Rasa-LilaM
April 27, 2022

Let me help ensure your payroll concern is properly addressed, OlympicCabinetry.


In QuickBooks Online (QBO) Payroll, the piece rate item or field is unavailable at this time. Alternatively, you can utilize the Other Earnings pay type and rename it (piece rate). Then use it when creating paychecks for your employees.


Here’s how:

 

  1. Open your company and go to the Payroll menu on the left panel to choose Employees.
  2. From the list, click on the worker’s name to view more information.
  3. Navigate to the Employee details tab and tap the Pencil icon for Pay.
  4. Head to the How much do you pay this employee? section and press the Pencil icon for Additional pay types.
  5. Go to the Common pay types section and tick the box for Other Earnings.
  6. Then change the name you wish to use for the payroll item.
  7. Click Done to save it.


After adding it, you’ll have to manually multiply the amount by the quantity. Once you have the information handy, enter it into the paycheck.


If the alternate solution doesn’t fit your business need, I suggest you let our product engineers know that adding the piece-rate payroll item in the Payroll and Projects features is a great idea.


We listen to our customers’ voices and suggestions to ensure we're able to cater to your needs while working in QBO. I’m here to show you the steps on how to send feedback.

 

  1. In QBO, tap the Gear icon in the upper right and choose Feedback under Profile.
  2. This will open a screen that lets you type your product suggestions.
  3. Once done, click Next to submit.


For additional resources, you can browse this article to learn more about setting up multiple and different hourly rates for employees: Pay an employee different hourly rates. It includes instructions on how to do it in each payroll version.


Drop a comment below if you have any clarifications in setting up a piece-rate item. I’ll jump right back in to help you. Enjoy the rest of the day and stay safe.

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