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  #1  
Old 10-27-2002, 07:16 PM
Bosley001 Bosley001 is offline
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Question An hourly AND salary employee

I am in the process of setting up Quickbooks to run live with payroll on 1/1/03 (I started running live with everything else in Quickbooks Pro 2002 at the beginning of the fiscal year 7/02).

I have instances in which an employee might do 3-4 different types of jobs, hence different wages and could be one salary and the rest hourly. Originally, I set up a different employee record for each of the different wage/positions for 1 person. But in trying to do the payroll check up, it's griping about the duplication of the SS#. Do I set up all their wage items in one record? The problem I have with that is that in their full-time salary position, they request an extra $75 in federal tax to be taken out but wouldn't want it taken out of their hourly 2 hour per week position. How to reconcile these different wages for 1 person? If I'm writing a check for their "hourly" wages, when I get to the create check screen, do I change their salary wage to 0? What about the fact that if they're salary they are semimonthly and if they're hourly, they're biweekly pay?
Thanks in advance.
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  #2  
Old 10-28-2002, 09:38 AM
brecor brecor is offline
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You've got an Human Resources nightmare there. I would even questions the employment law legality on that one, but that's in your hands.

The problem with creating multiple 'same person' employees, is that any tax that is based on a phaseout wage, ie unemployment, you are going to be paying in multiple times on or have to manipulate all of your data. And that is the purpose of the system not allowing the same SSN over again. It would be simpler just to add the different payroll items to the employee file and then in the additional w/h, 0 it out when not applicable.

If you have such a complex payroll, you should seek a stand alone payroll product that interfaces with qb and does job costing, or go to one of qb's more advanced payroll service options.
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  #3  
Old 10-28-2002, 09:48 AM
Bosley001 Bosley001 is offline
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I work for a school and they pay the teacher's their salary on a semimonthly basis but occasionally, the teacher has to sub for another teacher or they might have playground supervisor duty and those 2 positions are hourly....hence the multiple wage screens for 1 person. The payroll system I'm using now is DOS based and old and that's why I'm switching over to Quickbooks.

So, I could put all of the wage items into one record and just choose the one that I need for that particular payroll (salary or hourly)? And for those people who have multiple job types/pay plus they want additional federal or state tax taken out, instead of putting that figure in the tax screen of their file, I could set up that flat rate as a regular deduction and have it point back to my liability account? Will that report correctly on the 941 and W2's by doing it that way?

Are there any recommended stand alone payroll products that interface with Quickbooks?
Thanks.
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  #4  
Old 10-28-2002, 07:16 PM
PHebert PHebert is offline
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First of all, you absolutely do not want employees with multiple payroll records. That is a tax nightmare to be avoided.

For each salary or hourly amount setup an item in payroll. Assign hours under each item during the pay period. You could do this via the timesheet before hand and assign hourly or salary time to a particular job. QB will pay the salary items based on the annual salary level regardless of the number of hours posted, but look at the number of hours to determine the hourly amounts to be paid. I would fully post the number of hours - whether salaried or not. The number of hours worked is oftened used to determine other taxes (workers comp for example) The issue here is to maximize the use of QuickBooks.

QuickBooks federal income tax table looks at the aggregate total that you have inputted to QuickBooks to determine what amounts to deduct for income tax withholding. You have indicated that you have started this process as of 07/02. Have you posted year to date payroll totals? If you have not, your deductions for Income tax withholding (and possibly social security, and medicare) are wrong.

The $75.00 additional dedution is simply that an additional deduction. QB does not assess how the income was achieved, only what the total is and then it looks back at the entire year to determine what the correct withholding should be. After that it will deduct any additional withholding.

The beginning of the calendar or physical year is always the best start date. Especially for the start of payroll processing. Sign up for at least the basic payroll service with QuickBooks. Make sure you do all of the payroll processing via the QB windows and you should be fine. NEVER use a journal entry to adjust payroll or payroll taxes. Your payroll reports will not include this adjustment.

Now that I have told you what to do and not do. If you are afraid of payroll, outsource it. There are many who will provide this service including QuickBooks. On an outsourced basis, you would have to do some tricks to get payroll into job costing, but this would be preferrable to payroll tax fines and penalties.
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  #5  
Old 10-28-2002, 07:18 PM
brecor brecor is offline
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You are correct in you assumption of setting up the different pay & withholding items.

Most payroll software nowadays will have an export to quickbooks function since it is such a popular accounting package. You can check out pensoft payroll (www.pensoft.com). That is a very comprehensive package. And i am sure if you do a search on the web for payroll quickbooks export you will find alot of them to look over. And most nowadays give a demo or a time expiring full product to play around with to get the feel of it.
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  #6  
Old 10-28-2002, 07:54 PM
Bosley001 Bosley001 is offline
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I have now done much of what you have suggested but I still have a few questions.

First off, I no longer have employees with multiple payroll records. In the earnings screen of their payroll record, I have the annual rate listed for the salary position and the hourly rate for the hourly position(s). The pay period selected is set to "semimonthly" - otherwise, it won't calculate correctly when I create a salary payroll check.

On the other hand, though, when I create an hourly payroll check, and I get to the "preview paycheck" screen, I find that I have to replace the salary figure with a zero in the earnings section on the salary payroll line or else it is automatically computed into the check even if I write 0 hours on that line. Is this the correct way to do this? I write salary checks at different times of the month than I do hourly. Or should I start to write their entire check all at once now (including both their hourly and salary wages)?

I am still doing 2002 payroll in my old software program - I went live with everything else as of July 1, 2002. Currently, the old software is doing my 941's and will do the W2's at the end of this year. I have subscribed to the basic payroll service with Quickbooks but I don't intend to go live with payroll until January 1, 2003 - no historical payroll records need to entered then.

I did not set up the payroll software that I am using now for payroll. It seems to do things in an entirely different manner than what Quickbooks does. I am running "test payrolls" based on actual figures and comparing account totals, etc. to see if things are doing what they should be doing. As soon as I get that down, I'll run test 941s and test W2s. A long process and only 2 monthes before my deadline.

Thank you very much for your help!
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  #7  
Old 10-28-2002, 08:44 PM
brecor brecor is offline
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Yes when you need to run a hourly payroll, just 0 out the salary amount line.
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  #8  
Old 10-29-2002, 12:38 AM
PHebert PHebert is offline
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You need to view your payroll process as three separate cycles. Cycle one is your pay period to pay period cycle. All of the activities within this cycle go into each pay period. Salary and hourly it does not matter. I have never tested to see if you can run into problems by overlapping these cycles. The tax tables might give you slightly different amounts. As an example - if you were to cancel a paycheck from a prior period (the employee lost a check) and you recut a new check you would not get the same tax deductions in QuickBooks. Since you are in the process of testing this out (which I think is an excellant idea by the way), I'd do it in multiple ways to see if anything changes and examine what is changing and why. Other activities in cycle one are the adding of new employees, changing w-4 information, changing dedutions, making any employee changes or updates.

Your second cycle is monthly. This typically would include such things as paying 941 taxes (if you are on a monthly schedule), looking at 940 taxes to determine if deposits need to be made, payment of any deductions to insurance programs or retirement plans and basically building a check list to examine your pay records against. Make sure you process these payments via the payroll liabilities window. A very big taboo in QuickBooks is to post a journal entry that effects any payroll accounts. You will not see the entry on any payroll reports. Cycle one continues as usual without interuption.

Your third cycle is Quarterly. This will include filing all tax reports due for the quarter, which will usually involve state SUTA, some sort of workers comp, 941 reports and so on. (940 report (FUTA) is filed once a year). Some would say that a forth cycle is created at the end of the year, but I like to view this as part of the Quarterly cycle. In any case you will have to make provisions for this in some way, which generally means processing W-2s and by extention 1099s(vendor reports). Both the cycle one and cycle two schedules continue as normal. I live in the state of Washington and we do not have a state income tax. If you are in a state that does, you will have to factor that into your schedules.

Look at your payroll under this model and you should be good to go.
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