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hhroadsecure
hhroadsecure
July 3, 2021
Question

Averaging agreements

  • July 3, 2021
  • 1 reply
  • 0 views

I am just learning QBO and have come across a potential problem. I have an averaging agreement with two employees that work 7 days on/7 days off and they have signed an averaging agreement that they get paid for 42 hours/week instead of 84 in one week.

 

As I haven't gotten to the actual pay part, is there a way to enter the agreement in as a rule or do I have to doctor up the hours to make it look like they are really working 42 hours a week? I'm guessing it's either super easy and I am a bit dense or it doesn't come up much as I couldn't find anything about it through Google.

1 reply

A
Alex M
July 6, 2021

Hi there hhroadsecure,

 

It's vital that your employees are set up correctly in order for you to be able to pay them the right amount. QuickBooks Online Payroll is a great tool that can help you run your payroll while calculating all the necessary deductions you need to remit to the government. I can provide some information on this.

 

There is no specific way to enter this type of agreement within the payroll system within QuickBooks Online. You can either put it as 42 hours each week, or you could possibly add a new pay type as an advance to pay on the week they're off, and a deduction to remove some pay from the weeks they work the 84 hours. You can follow these instructions to set up an advance.

 

In order to know which would be the best way to represent this in our payroll, I recommend reaching out to your accountant. Their accounting knowledge as well as best business practices will be able to guide you in which of these options is best. You can add your accountant by entering their info in the My accountant tab. You can also find an accountant near you by clicking the Find a pro to help button.

 

If you have any other questions, feel free to reach out here.

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