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December 26, 2021
Question

Want to change employee from Salary to hourly as of 1/1 and another their address (new State). But I do not want this info changing for 2021 W2s, only for 2022.

  • December 26, 2021
  • 1 reply
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If I change address even after 1/1/2022, will their 2021 W2 show the old address (which would be correct).

1 reply

MaryLandT
December 26, 2021

I'm glad to help update the employee's pay type and address, irasales.

 

QuickBooks follows the principle of constructive receipt. This means that taxes are reported based on the date they pay employees, regardless of when they did the work associated with that paycheck. 

 

The date in the Period columns is the date of the paycheck and not of the work period. Also, payroll taxes are considered part of 2021 liabilities.

 

That being said, you can now start updating the employee's information. However, you need to use the old address and pay type when you file the W-2 form.

 

Here's how:

 

  1. Go to Payroll menu, then Employees.
  2. Click the name of the employee.
  3. Select Edit employee.
  4. Go to the Pay tab, then  How much do you pay [name of the employee].
  5. Select Hourly and enter the amount earned per hour.
  6. Click Done.
  7. For the new address, select Profile and enter the home address of the employee.
  8. Click Done to save the changes.

 

After that, you can start creating a paycheck for this employee. When it's time to file the W-2 form, you need to change and enter again the old address.

 

I'm also adding this article to help you get ready during tax season: Important Year-End dates updates. It provides screenshots so you know when you file tax returns in QuickBooks.

 

Keep me posted if there are other things you need by commenting below. I'm always right here to help update the employee's pay type and address.