How to use QuickBooks for job costing - set up payroll

Many companies believe that setting wages in QuickBooks for work cost calculations is frustrating and difficult. Indeed, in order for the payroll to flow correctly into the ABC report, several steps are required, especially if you want to include payroll taxes and benefits, but the step-by-step instructions below will guide you through the setup.

Since labor is often the biggest expense for most companies that are doing work cost calculations, it's important to include them in your work cost reports. If you don't, the job will look more profitable than it actually is. Worse, some people may even lose money without your knowledge. Not only does this affect your current situation, it also leads you to create inaccurate estimates for future work.

Here are the steps to set up payroll accounting for payroll accounting in QuickBooks:

Set preferences:

1. Go to Edit > Preferences > Company Preferences and select Payroll and Employees

2. Select "Full salary" or "Complete salary customer"

3. Check "Wage Costing, Class and Project Tracking for Salary Expenditure"

4. Go to time and cost

5. Under Yes, "Are you tracking time?"

6. You can also view the "Create an invoice from the time and expense list"

Set the salary item:

1. Go to "List" > "Wage Items"

2. Edit each add and company contribution project to ensure that "Track by work" is selected

3. Payroll items can only be mapped to one expense account, so you may need to set separate settings for COGS and overhead expenses.

Set up employee records:

1. Go to the Employee Center and double-click on the employee's name

2. Change the label to payroll and compensation information

3. Check "Create salary with time data"

Set default values ​​for new employees:

1. Go to the Employee Center and select Manage Employee Information > Change Employee Defaults

2. Check "Create salary with time data"

Set up Workers Comp:

1. Set worker compensation in employee > worker compensation > set worker compensation

2. Set your worker compensation code in the Employees > Workers Compensation > Worker Compensation List.

3. Go to "List" > "Payroll Items" to double check that the "Staff Pay" payroll item has checked "Track by Work"

Use Timesheets

1. Go to Employees > Enter Time > Use Weekly Schedule

2. Complete from

all from

 Includes information on payroll items and service items [these are different] - marked as billable if you are billing time and materials

3. You may wish to add customers: overhead work

4. Consider using Time Tracker or WorkTrack Time Card so employees can enter their own time

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