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dsmith3
March 12, 2019
Solved

Reclassifying some employees to COGS and administrative employees to expenses

  • March 12, 2019
  • 1 reply
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I would like to move my help desk techs to COGS but keep my administrative team in expenses. I use quickbooks online and run the payroll myself. How do I reclassify only some employees?

Best answer by AldrinS

Welcome to the Community, dsmith3.

 

I'd be happy to help you reclassify your employees' payroll settings. Just follow these easy steps:

 

Edit Payroll Settings

  1. Click the Gear icon.
  2. Choose Payroll Settings.
  3. Select Accounting in the Preferences section
  4. In the Wage Expense Accounts section, select I use different accounts for different groups of employees.
  5. Choose the appropriate account (COGS) from the Wage Account drop-down menu for each employee.
  6. Scroll down and click OK.
  7. You'll be routed to the Account Preferences Summary page. In here, you're given the chance to update the existing transactions of your employees. Just enter the correct Starting Date, then click Update.
  8. Hit OK once the update is complete.

Before you go, please be sure to reach out to an accounting consultant to ensure this method is the best suit for your business. With Intuit's Find-A-ProAdvisor site, you can search for certified professionals in proximity to your ZIP code that can discuss options more personal to your business's needs.

 

Be sure to let me know if there's anything else I can do to help you succeed with QuickBooks. Thanks for reaching out, wishing you and your business continued success.

1 reply

A
AldrinSAnswer
March 12, 2019

Welcome to the Community, dsmith3.

 

I'd be happy to help you reclassify your employees' payroll settings. Just follow these easy steps:

 

Edit Payroll Settings

  1. Click the Gear icon.
  2. Choose Payroll Settings.
  3. Select Accounting in the Preferences section
  4. In the Wage Expense Accounts section, select I use different accounts for different groups of employees.
  5. Choose the appropriate account (COGS) from the Wage Account drop-down menu for each employee.
  6. Scroll down and click OK.
  7. You'll be routed to the Account Preferences Summary page. In here, you're given the chance to update the existing transactions of your employees. Just enter the correct Starting Date, then click Update.
  8. Hit OK once the update is complete.

Before you go, please be sure to reach out to an accounting consultant to ensure this method is the best suit for your business. With Intuit's Find-A-ProAdvisor site, you can search for certified professionals in proximity to your ZIP code that can discuss options more personal to your business's needs.

 

Be sure to let me know if there's anything else I can do to help you succeed with QuickBooks. Thanks for reaching out, wishing you and your business continued success.

    B
    bgoodrud
    April 29, 2020

    How do I get to payroll settings in quickbooks desktop to choose to break out my employees by different categories?  I also have enhanced payroll if that matters.  I went to payroll set- up and payroll preferences and don't see it. I don't see an option to select that I Use different accounts for different groups of employees.  TIA

    M
    MadelynC
    April 30, 2020

    Hi @bgoodrud,


    For a group of employees, you’ll want to enable class tracking and add a class to your employee’s profile. Here are the steps you can follow:

     

    1. Go to the Employees menu.
    2. Choose Employees Center.
    3. Select an Employee, then select the Payroll Info tab.
    4. Add Class, then hit OK.


    You can also add an item name under earnings if you’d like to automatically show to employee’s paycheck.

     

    QuickBooks Desktop uses payroll items that can assign to different accounts. Here’s how:

     

    1. Select Lists at the left top and choose Payroll Item List.
    2. Click Payroll Item.
    3. Select New and hit Custom Setup.
    4. Enter the necessary information. 
    5. Select the Expense account you created.
    6. Hit Next until you can select Finish.

    You can refer to these articles for additional reference:

     

    Leave a post below if you have other payroll-related questions or concerns. I'm always here to help.

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