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N
NEVER
April 26, 2019
Question

How to Classify Credit Card Payments

  • April 26, 2019
  • 2 replies
  • 0 views

I do payroll for an organization that uses classes for everything. Most of the organization's 20 employees work in different areas (classes) of the business. I use Timesheets and Time Data to create paycheques. This allows me to classify all earnings items for each employee. There are Other Payroll Items which cannot be added to Timesheets (like Insurance Deductions, VacPay Accrual Paid out, etc) or classified in the Paycheque Review screen. These Other Payroll Items MUST be classified. How can I do this?

2 replies

J
JamesM
April 26, 2019

Hi there, 

 

Thanks for posting your question in the Community. It's always good hearing from you. 

 

I want to make sure you get the most accurate answer for your question. I recommend reaching out to an accounting professional to get the best suggestion possible. You can search for an accounting professional right from our website. Let me know if you have questions. I'm here to steer you in the right direction. :) 

N
NEVERAuthor
April 26, 2019

First, the discussion was posted in Paying Employees and read: How do I classify Paycheques?

Second, why would an account have any idea how to apply a Class to a Credit Card? Please read the questions before sending people on a wild goose chase.

L
LauraAB
April 26, 2019

Hi impossible,

 

I want to make sure that I'm following your question. The bulk of what you're asking is related to classifying payroll items in QuickBooks Desktop, but the title for the question is about classifying credit card payments. I'll focus on the payroll items and Timesheets/Time Data since that seems to be where your focus is, but don't be afraid to reach out if you'd like some direction about credit card payments as well.

 

I can see how having classes for your payroll items is important considering your employees work for different areas of the business. While class can't be added to all payroll items, it's possible to add class to an employee, which may satisfy your needs. To do this, simply double click on an employee name from the Employee Centre to edit their profile and then navigate to the Payroll Info tab. From there, you'll be able to add a class to your employees. In doing that, QuickBooks will automatically add the class to payroll items that can have class assigned to them directly on the employee's paycheque. If something needs to be classed differently, you can change it in the options on the Review or Edit Payroll window if it's available for the item. You'll then be able to filter by class when you customize reports and run them.

 

Timesheets and Time Data are used for registering the hours worked for an employee. Payroll will pull this information from the Timesheets if you have it set up that way and add it to the regular paycheque, so there's no need to add deductions and other payroll items to the time card. It's on the paycheque details in the Payroll Centre that you'll see the additional payroll items such as VacPay Accrual Paid out and so forth come into play.

 

I hope that helps clear that up. Enjoy your weekend.

R
Rochelley
April 26, 2019

I can't confirm this right now, but I have done this before with a construction company.  If I recall, when you use Class tracking (or Job tracking) on the different lines of your income Payroll Items, Quickbooks automatically assigns all of the other expense Payroll Items to the same classes, proportionately.  For example, if 10% of your payroll income lines are assigned to one class, 30% to another, and 70% to another, you should find your other payroll expenses on the same cheque being apportioned to each class in the same percentages.

 

Make sure that Class Tracking is turned on in 'Accounting' preferences.  Also make sure that 'Job Costing for pay cheque expense' is selected in the 'Payroll & Employees' preferences.  

 

You can test this by doing a report and filtering by Class to see the transactions coming from the pay cheques.  You should see that the CPP Expense, EI Expense, benefits expense and any other expense on the pay cheques are being allocated properly to your different classes.

R
Rochelley
April 26, 2019

I should have also mentioned that when you choose the option in 'Payroll & Employee's' - Job Costing, Class and Item tracking for pay cheque expenses, Make sure to also check 'Assign one class per Earnings item'.  If you choose 'Entire Pay cheque' then you won't be able to split your lines to different classes.

R
Rochelley
April 27, 2019

For sake of clarity, I've attached some visuals to show what happens when you do as I suggested in earlier post.  The one step I missed earlier was that each Payroll Item must also have 'Track Expenses by Job' checked off, including all Vacation items so that accrued Vacation expense will be separated into classes as well.

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