Question
How do I record mandatory stat pay properly in Quickbooks Online?
Just had a client go through an ESA audit and I'm having trouble figuring out how to correct one of the non-compliance issues related to mandatory stat pay.
The auditor has indicated that since this client pays vacation pay each pay, that the vacation pay needs to be included in the calculation for the mandatory stat pay. For example, employee works 40hrs per week, $20/hr, 4% vacation pay. Employee would be entitled to 8 hrs of mandatory stat pay and the amount paid would be $166.40 (8hrs x $20 plus 4% vac pay). Employee then gets 4% vacation pay on the mandatory stat pay. This effectively changes the hourly rate for the mandatory stat pay from $20/hr to $20.80/hr.
I'm leery about changing the mandatory stat pay hourly rate for each employee to be 4% higher then their regular hourly wage but I can't figure out any other way to do this. Hours have to be recorded for ROE purposes so I can just feed in a dollar amount.
Anyone have suggestions/comments?
The auditor has indicated that since this client pays vacation pay each pay, that the vacation pay needs to be included in the calculation for the mandatory stat pay. For example, employee works 40hrs per week, $20/hr, 4% vacation pay. Employee would be entitled to 8 hrs of mandatory stat pay and the amount paid would be $166.40 (8hrs x $20 plus 4% vac pay). Employee then gets 4% vacation pay on the mandatory stat pay. This effectively changes the hourly rate for the mandatory stat pay from $20/hr to $20.80/hr.
I'm leery about changing the mandatory stat pay hourly rate for each employee to be 4% higher then their regular hourly wage but I can't figure out any other way to do this. Hours have to be recorded for ROE purposes so I can just feed in a dollar amount.
Anyone have suggestions/comments?