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Adjusting employee salary or wages

QuickBooks calculates gross pay as follows:

Gross =

all compensation+special compensation (such as commissions) + taxable company contributions + additions to gross (in the order you add them to the table)

In general, the position that an addition to gross has in the table affects how QuickBooks calculates deductions based on a percentage of gross.

Example

An employee has a salary of $1,000, an addition to a gross of $100, and a 2% deduction from gross.

  • If you enter the addition first, QuickBooks calculates the 2% deduction on a gross of $1,000 + $100, or $1,100. The net salary is $1,078 ($1,000 + $100 -$22).

  • If you enter the deduction first, QuickBooks calculates the 2% deduction on a gross of $1,000. The net salary is $1,080 ($1,000 - $20 + $100).

See also

KB ID# H_PAY_EMP_DEFAULT_GROSS_PAY_CALC
9/29/2016 6:29:23 PM
PPRDQSSWS407 9138 Pro 2017 90abcc