Skip to main content
C
chaya143
November 8, 2023
Question

Standard mark-up on payroll and Remove payroll taxes from a project

  • November 8, 2023
  • 1 reply
  • 0 views

I am using quickbooks payroll with timesheets.  I have set-up my employees to bill time to projects.  This seems to be working, but it is billing both their hourly rate and taxes and we budget the projects based on hourly rate plus a standard fringe rate.

1.  I want to remove the taxes from the project- how do I do this?

2.  I want to add a standard fringe rate for all employees working on the project that accounts for taxes, insurance and other benefits that I want to charge to the projects.  Is it possible to add a mark-up on wages the way I can do for contractor time or expenses or anything else?

    1 reply

    C
    CharleneMaeF
    November 9, 2023

    Hi there, chaya143.

     

    I'm here to share details about removing payroll taxes from a project and adding mark-up on payroll.

     

     In QuickBooks Online Payroll, the payroll expenses will only be posted to your project after you've run payroll. It includes employee wages and other direct costs like taxes and workers' comp insurance. Therefore, were unable to remove taxes in the projects.

     

    When it comes to creating a standard fringe rate for all employees in QuickBooks, there are only a few preset fringe benefits available to choose from. I've listed these options for your reference below.

     

     

    Currently, we don’t support other fringe benefits in QuickBooks Online Payroll. For more details, please see this article: Add Fringe Benefits to Paychecks.

     

    Should you encounter any difficulties and uncertainties while running payroll or working with other areas, please don't hesitate to reach out to me again. Your seamless experience is my top priority.

    C
    chaya143Author
    November 10, 2023

    I’m not trying to create a fringe rate in payroll, I just want to add additional mark-up above actual payroll to the projects that I am billing for.   Before using time I could set a rate that included fringe and just enter employee time with that rate on the project manually.  Why can’t I mark-up payroll costs in projects the same way if not using QuickBooks timesheets?  If not possible, this seems like a major downfall of using QuickBooks to track time for projects.

    G
    GebelAlainaM
    November 10, 2023

    Hello there, @chaya143.I understand the importance of managing markups in QuickBooks Online (QBO). I'll ensure to provide some relevant information about your concern.

     

    Yes, you're right that you can set a rate that includes fringe and enter employee time with that rate on the project manually using QuickBooks Time since its feature is specifically for tracking time. However, each QuickBooks product has different features available, so there will be times when some features are not available on other products. That said, the option to enter additional markup above the actual payroll to the projects is unavailable. You'll want to continue doing it with QuickBooks Timesheets.

     

     Also, know that the markup feature in QBO is used only with billable expenses on the vendor side.

     

    You can check out these articles for more details on managing projects in QBO:

     

     

    Moreover, I'll be leaving you these articles in case you want to review or get a closer look at your business' finances:

     

     

    Keep me posted if you have clarification in managing projects and time in QuickBooks. I'll always be here to assist you. Have a great business!

    Terms & ConditionsAccessibility statement