Calculate the hourly burden rate for each employee.

(note the first 2 minutes 48 seconds of this video is the same as the video above for the employee as a vendor method) Using the Manual Payroll system in QuickBooks method: If you have never used the payroll system in QuickBooks and/or you have more than 5-10 employees, I recommend using this method. The actual paycheck created the expenses, so this check is just a wash. The net check amount will always be zero! You are basically creating job costs – then zeroing them out to no job.At the bottom of the detail, enter the labor item on one line and enter a negative amount for the ENTIRE AMOUNT OF THE CHECK.The time will populate in detail in the split area (on the item tab) of the check – enter a rate for the employee that is approximate to the base hourly wage, plus payroll taxes (usually about 12%) plus work comp to populate the amounts for each line item.(It’s important to be consistent so you don’t “lose” any time periods!) On a regular basis (weekly?) Create a “check” to the employee/vendor from a dummy bank account in QuickBooks – when you enter their name on a check, it will ask you if you want to pay using the time entered – click yes and then choose the date range for the time you’d like to job cost.(I recommend importing the time from TSheets!) Enter their time sheet into QuickBooks under the vendor name, be sure to assign the job and service item each line on the timesheet.

Calculate the hourly burden rate for each employee.

You will want to use this method if you don’t have more than 5-10 employees and you’ve previously used the payroll system in QuickBooks to process payroll. If you are instead using an outside payroll service (like Paychex, ADP, etc), there is a work-around you can do – it’s not as exacting as using the internal payroll system of QuickBooks Desktop, but you can come really close. Intuit even has a service called “assisted payroll”, where you run the payroll in the software and then and submit it electronically to them and they file your forms and pay your taxes.

The best way to do labor job-costing is to run the payroll through QuickBooks Desktop, using time sheet entry.

What does quickbooks payroll service do