If you have a number of hourly employees, you will find that the Enter Time function is the quickest way to process your payroll. Most companies that have hourly personnel, have them fill out their time sheets on a daily basis, so you can enter in the time sheets at the end of each week leading up to the payroll.
Once you have completed the timesheets, QuickBooks will pull that information into the detail portion for each employee when you start the scheduled payroll.
I am using a QuickBooks sample company which sells sports equipment and gives lessons, to demonstrate this for you. I am assuming that by this stage of the QuickBook segments I have provided for you, you will know how to set up any missing information such as Items, Accounts and Employees. If not, then do a search on this site and look for a blog segment to help you.
Many people do not realize that you can cost any portion of an Employees wages to a Customer Job. To do this you would use the Enter Time function in Payroll. This function is found on your Home page in the Employees module and by clicking on the Enter Time icon. This will open up a smaller window:
- – Use Weekly Timesheet
- – Time/Enter Single Activity
The Use Weekly Timesheet is the most used selection but if you were tracking time, as in minutes and hours, you could use Time/Enter Single Activity also.
I have only seen the Time/Enter Single Activity used in relation to a company that was building a transportation customer counter. They wanted to pinpoint an exact cost to build the different components during the research and development stages. We are going to select Use Weekly Timesheet.
I am going to use an Employee in this sample company, whose name is Christine Girard. She was the instructor who gave two customers some lessons. The selection of Christine immediately activates a pop-up window with the message Would you like to set this employee to use time data during pay cheque creation? The choices are Yes & No.
What QuickBooks is asking me is, do I want this information that I will input to be used when it is time to create a pay cheque for this Employee? This will save me time on the day that the payroll run is being generated for the pay period. So I will choose Yes. I need to choose from the Week Of field, what week this information pertains to. I have chosen Jan 14 to Jan 20, 2011.
This takes me back to the Name field and my first tab to the Customer field. The customer in question is Martin Brault, so I choose him. The next field is the Service Item from which I will choose from the drop-down box – snowboarding lessons. The Payroll Item is Hourly and in the Notes field I type in 3 hrs. of instruct.
The rest of that line shows the week and date starting with M (Monday) the 14th, where I will enter the number 3, extending to S (Sunday) the 20th. After that is two columns, Total and Billable.
The Total column will add up the number of hours in that week and the Billablecolumn has a box for checking if I wanted to include this cost as part of the billable time to this customer (Martin Brault). I am going to check the Billable box.
Since there are more hours to enter and M (Monday) the 14th is not completed, I will tab until the cursor takes me back underneath the Customer Job field.
The remaining five hours for M (Monday) are not associated with a Customer or Service Item so I will tab to the Payroll Item field, choose Hourly again, and underneath the 3:00 hours in M (Monday) the 14th column, add 5 hours to make up an 8 hour day. The Totals column for M (Monday) the 14th will now show 8:00 but I need to uncheck the Billable box that is beside the 5 hours on that line, because it is not Billable to a job.
You would not be able to leave the Billable box checked anyway, because you would receive a message stating that you need to include a Customer and Service Item on that line.
Christine only worked four days that week, in which one day was costed to a job, so I am going to enter T (Tuesday) through to Th (Thursday) as eight hour days, paid Hourly. Christine will now have 32:00 hours as a Total for that week. I will now choose Save & New since there still is another week to process.
This takes me back to Name field where I will repeat the steps as per the first week using Christine Girard, but with a different week – Jan 21 to Jan 27, 2011. The following will be the information for that week: Customer: Job is Jeffrey Lin, Service Item – Lessons: Skiing lessons, Payroll Item – Hourly, Notes – 4 hrs. , 4 in M the 21 column, and Billable is checked off.
The line below will have no Customer or Service Item, Payroll Item – Hourly, no Notes, 3 in M the 21 column and uncheck Billable. The Totals for M the 21 will be 7:00. On a new line I will add 8 hours for T (Tuesday) through to F (Friday). That line will total 32:00 and the Totals of all the columns will be 39:00.
I can now choose either Save & New to enter in another Employee or Save & Close if I am finished. Since I am only using one Employee for this demonstration, I will choose Save & Close.
You have just learned how to use the Enter Time function in payroll to cost a portion of an Employee’s wages to two Customer Jobs, and the rest of the time was for a normal two weeks of hourly earned wages.
The next segment will be to Pay Employees and see how the Enter Time function flows to this area.
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