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M
missmissySEI
August 1, 2023
Question

Payroll Rounding

  • August 1, 2023
  • 1 reply
  • 0 views

I enter my employees time with QUICKBOOKS timesheet.  We pay per hour not per job. QUICKBOOKS groups the hours by job and then rounds differently then what I figure as 40 hours. Therefore I am off by usually a penny but this time it is 3 cents. How can I make it just figure the rate at 40 hours?

1 reply

DivinaMercy_N
DivinaMercy_N
August 1, 2023

Hello there, @missmissySEI. I'm here to share some information about payroll rounding in QuickBooks.

 

In QuickBooks, penny differences are usually caused by rounding in a paycheck or tax calculations. These depend on certain circumstances. Refer to the following:

 

  • Net pay for a salaried employee- a few pennies change from paycheck to paycheck are due to rounding for taxes that are calculated at exact rates (like Social Security and Medicare). 
  • Amounts on reports or forms - there are usually penny differences in the amounts on payroll reports and tax forms. But, tax agencies generally only care about amounts rounded to the dollar.
  • Prior payrolls and tax payments - when you enter payrolls from earlier in the year that were processed by another service, this may have used slightly different calculations that cause small differences from what our system expects.
  • Large differences- there are differences of more than 10 cents. They are generally not due to rounding in calculations. This may indicate a discrepancy or error. To avoid this, review your payroll and tax records.

 

For more information, visit this article: Why do I occasionally notice penny rounding differences?

 

I also include this helpful resource that you can use as a guide in running payroll reports in QuickBooks: Generate Excel-based payroll reports.

 

If you have other concerns about managing your employee timesheets, please don't hesitate to leave a reply below. I'm always here ready to lend a hand.

M
missmissySEIAuthor
August 1, 2023

Thank you but this is not a tax problem. I figure the taxes not quickbooks. This is a difference in gross pay. Quickbooks breaks the jobs down and figures the pay by jobs instead of just a plain rate of 40 hours. Because of that it rounds differently causing a 3 cent difference on the gross. 

    A
    AileneA
    August 1, 2023

    Hello, missmissySEI. 

     

    When it comes to rounding methods in QuickBooks, there are typically two options to choose from. One is to calculate tax amounts based on the net price, while the other is to calculate based on the paycheck, which includes Social Security and Medicare. Regardless of which method you choose, QuickBooks will always round the tax amount to the nearest cent for accuracy.

     

    If you're experiencing the same issue, your company file may have suffered some data damage. To assist you in identifying and resolving this issue, we suggest running our Verify Rebuild Data tool. However, before we proceed, it's essential to ensure your QuickBooks Desktop is up-to-date. This will ensure you always have access to the latest features and fixes available.

     

    To verify the data: 

     

    1. On the top menu, click File and select Utilities.
    2. Click on Verify Data.
    3. Select OK when QuickBooks doesn't detect any problem with your data.
    4. If Verify finds an issue with your data, you'll be prompted to Rebuild Now or View Errors.
    5. Click Close or View Errors and take note of the specific error message.

    Next, here's how to rebuild data: 

     

    1. On the top menu, click File and choose Utilities.
    2. Click OK if you receive a prompt to back up your company file.
    3. Select OK when the rebuild is complete.
    4. You can rerun the Rebuild Data to ensure there's no error.

    You can visit this detailed article for additional information: Verify and Rebuild Data in QuickBooks Desktop. 

     

    If there is anything else you would like to inquire about payroll rounding matters, please don't hesitate to let me know. I'll be around to assist you. Have a great day!

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