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M
Melcher101
October 9, 2023
Question

Matching Payroll Expense to related revenue

  • October 9, 2023
  • 1 reply
  • 0 views

I have a service business and all of my COGS is payroll. My pay period ends every second Saturday at 11:59 PM and pay is the next Thursday, via direct deposit on QB Assisted Payroll. I use QB Desktop Enterprise, set to service. It took me many hours every month to do a study and determine my gross profit.
I have two issues:

  1. The payroll is charged automatically to the pay date. I need it to be charged to the date the work was performed and QB has that information in the timesheet. So I changed the pay date to Saturday; which QB changed to Friday and now my taxes are due a full week earlier. How do I get reporting to recognize the time that work was performed and report the pay date to the IRS?
  2. I have the overhead payroll (office workers and sales) on a separate payroll. Their taxes are charged to COGS, which is a significant variance from accuracy in my Gross Profit. How do I split taxes so my Gross Profit (Revenues less COGS) is accurate? 

1 reply

R
rvrfrf
October 9, 2023

Thanks for getting in touch with the Community, Melcher101. I appreciate your detailed information.

 

Payroll will always hit the register on your pay date. Since you're using a Payroll Assisted subscription, you have a Next-day (1-day) funding time. This means workers are paid the next banking day after you send your payroll to Intuit.

 

For example, if you want the payday to be Friday, you'd need to submit your payroll by Thursday before 5:00 PM PT. In the event you'd prefer to pay an employee on Wednesday, you'd need to submit payroll by Tuesday before 5:00 PM PT.

 

In regard to your second question, you'd have to go through the payroll setup and confirm your accounting is set to the appropriate account you want to be using.

 

You can use the steps from our following articles to do so:
 

 

If you have any further questions relating to this that aren't covered in those articles, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

I've also included a couple detailed resources about working with payroll which may come in handy moving forward:
 

 

Please feel welcome to send a reply if there's any questions. Have an awesome Monday!

M
Melcher101Author
October 11, 2023

That does not really help. I shouldn't have to use excel to understand my business when the data exists in QB. I feel I'm wasting the money I spend each year in that I cannot see my KBI without a major project.

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