QuickBooks Payroll Tip – Changing Hourly Wage Mid-Week
A reader wrote to ask the following QuickBooks payroll question.
I have 54 union employees that I have to do this for due to an hourly wage pay scale increase.
Oh, and I will also need to change some of the company paid union fringe benefit amounts as well.
There are a couple of ways that you can accomplish this when using QuickBooks, however, because you are dealing with union hourly wage rates, it really depends on:
- Are you still working on contracts that will use the existing hourly rates of pay and fringe benefit amounts?
- Are the new hourly wage rates for contracts that you start between now and the next pay scale increase?
- Are the new hourly wage rates effective for all current projects as well as any new contracts between now and the next pay scale increase?
Some people would simply suggest that you use the existing Payroll Wage Item and manually split out the number of hours using two different hourly wage rates when you create the paycheck.
Other people would suggest that you Edit each QuickBooks Employee Record, going to the Payroll & Compensation Info tab and in the Earnings box select the existing Payroll Item Wage name and assign the new hourly wage rate – this gives you two instances of the same Payroll Wage Item with two different rates of pay assigned to it – QuickBooks will allow this (personally I think it is a flaw in the program) even though QuickBooks will not be able to determine which rate is should use when you select the payroll item in Timesheets and/or paychecks.
I do not recommend using either of the above methods as they are too error prone and do not leave you a reliable means of tracking what an employee was earning during a specific period of time.
The method that I recommend is to create new Payroll Wage Items and Company Contribution Items with the applicable rates of pay and hourly benefit amounts. Once you have created these items, edit each employee and add the new items to their Payroll & Compensation Info tab. When you enter time in the Weekly Timesheets, choose the old payroll item/pay rate for the applicable days and then choose the new payroll item/pay rate when they become effective.
Setting up QuickBooks in this manner makes the program work for you, instead of you having to always remember to manually make the pay rate changes.
- A clearly visible audit trail for your Union Fringe Benefit Reports.
- Accurate pay checks.
- Less stress.
Having to manually create new payroll items AND then update 54 employee records with new payroll wage items and rates of pay is a time-consuming process as you have to do each payroll item and employee one at a time.
Check out Wage Manager Solution, a QuickBooks integrated application designed specifically to automate this process.
Watch a 10 minute video which provides an overview of how Wage Manager Solution works.
One Response to QuickBooks Payroll Tip – Changing Hourly Wage Mid-Week
Leave a Reply
- “Overstating” the Importance of Cost Reporting-Free Webinar
- QuickBooks 2015 Announced – Important System Requirements
- How do Amazon Merchants Reconcile in QuickBooks? Webinar
- Happy 14th Birthday Sunburst Software Solutions, Inc.
- Simple Controls You Can Put Into Place to Discourage Fraud
- Business Susceptibility to Theft and White Collar Crime – Are You a Target?
- Warning Signs & Red Flags of Fraud – Are Your Employees Stealing From You?
- Is Managing QuickBooks Purchase Orders Driving You Insane?
- Free Webinar-Identify and Safeguard Against Business Fraud
- Technology is Changing How We Submit Certified Payroll Reports
- Ask Me Anything – 10 Common Questions about Certified Payroll
- Are Your QuickBooks Payroll & Certified Payroll Processes Efficient?
- QuickBooks Tip: How to find “Notes” after an Upgrade
- QuickBooks Timely Payroll Alerts, Updates & Issues for 2013 Payroll Tax Returns
- QuickBooks Tip: How to Calculate Over/Under Billings
- Happy Holiday’s to you!
- Employee Reimbursements-Accountable vs Non-Accountable Plans
- Sunburst’s Weekly Wrap-Up of Popular Posts 12/2 – 12/8/2013
- Q & A: QuickBooks Employee Payroll Reimbursements & Job Costing
- Sunburst’s Weekly Wrap-Up of Popular Posts 11/24 – 12/1/2013
- Using Account Numbers in Your QuickBooks Chart of Accounts
- Straight from the IRS - Social Security Tax Reduced to 4.2%
- QuickBooks 2012 - Frequently Asked Questions About Upgrading
- QuickBooks 2013 Upgrade Do's, Don'ts & Frequent Questions
- Calculating & Displaying Fringe Benefits on a Certified Payroll Report
- QuickBooks Payroll Tip - Tracking Employee Advances or Loans
- QuickBooks Tip - Job Costing Starts With A Simple Item
- QuickBooks Tip-Handling Employee Reimbursements for Expenses
- QuickBooks Tip - Determing Cost of Goods Sold
- QuickBooks for Contractors Tip – Advanced Progress Invoicing
- QuickBooks Creating a More Meaningful Payroll Expenses Section
- QuickBooks for Contractors Tip – Basics of Progress Invoicing
- QuickBooks Tip - Child Support Garnishments
- New FHWA-1391 & 1392 Annual EEO Forms For Highway Contractors
- Create a QuickBooks Job Cost Report With Hours & Payroll Costs
- QuickBooks 2012 Announced
- QuickBooks 2012 - Best Practices & Tips for Installing an Upgrade
- Frequently Asked Questions - California Prevailing Wage
- QuickBooks Tip-Creating a Functional Payroll Liabilities Section
- QuickBooks 2011 - New Balance Sheet by Class Report - Part 1