A common concern expressed by companies who are new to QuickBooks payroll, is if they have the ability to set up different pay salaries for their employees, for example, they might wish to pay their employees like this:
- Company officers – monthly salary
- Clerical staff – hourly basis, bi-weekly
- Field Workers – hourly basis, weekly
One question we here is “how do we accomplish this when using QuickBooks?” _______________________________________________________
You can accomplish this when using QuickBooks Basic, Enhanced, or Assisted Payroll.
QuickBooks allows you to create a “Pay Frequency” and a “Payroll Schedule” to meet your various payroll needs.
Begin by going to the QuickBooks Employee Center and clicking on the Employees tab.
Pick an employee and choose the Edit Employee button, switch to the Payroll & Compensation Info tab. In the upper right corn you will see a Payroll Schedule option, this is where you will create a new Payroll Schedule and corresponding Pay Frequency.
From the Payroll Schedule dropdown menu choose Add New, below is the setup for a bi-weekly payroll schedule:
There are two very critical dates that you must enter when you create a new Payroll Schedule, they are:
- What is the pay period end date? This date should be the date the first bi-weekly payroll will end on.
- What date should appear on paychecks for this pay period? This date should be the date that the first bi-weekly paycheck will be run.
The screenshot above indicates the following information: The bi-weekly pay period will end on Saturday July 10, 2010 and we will process payroll checks on Wednesday July 17, 2010.
Once you have created your Salary Frequency / Schedule you will then edit each employee's record, going to the Payroll & Compensation Info tab as select the appropriate frequency (Weekly, Bi-Weekly, or Monthly).
When you are ready to actually pay your employees, go to the Employee Center and click on the Payroll tab, each of your Payroll Frequencies will be displayed, click on the appropriate frequency (Weekly, Bi-Weekly, or Monthly) and click the Start Scheduled Payroll button.
We hope you have found this QuickBooks Payroll Tip to be helpful, if so, please feel free to leave us a comment below.