This preference lets you track payroll costs by job, class, or service
On paychecks, QuickBooks prorates company-paid taxes by your jobs, classes,
and/or service items, using the ratios it derives from the way you split up
earnings in the Earnings table.
When you create or edit payroll items that are additions or company
contributions, QuickBooks displays a checkbox called Track Expenses by Job on
the "Name used in paychecks and payroll reports" screen of the
payroll item setup wizard. If you select this box, QuickBooks prorates those
items on employee paychecks the same way it does company-paid taxes, as
Let's say an employee earns $1,000. On their paycheck, you split their
wages between two jobs, like this:
In other words, 60% of this employee's pay was due to working on the Baker
family room and 40% was due to working on the Jacobsen kitchen.
QuickBooks takes all company-paid taxes and assigns 60% of their amount to
the Baker family room and 40% of their amount to the Jacobsen kitchen. It does
the same for any addition or company contribution that you marked as Track
Expenses by Job. These amounts then show up in the
Profit & loss by job report to
give you a more complete picture of how much your jobs are costing you.
After you turn on this preference, go to the Lists
menu and click
Payroll Item list. Select any addition and company-contribution payroll items
that you want to
include in your job costing. Click Payroll Item at the bottom of the list and
click Edit Payroll Item.
You need to turn on class
tracking in order to job cost by class.
You can set a preference to assign a class either to an
entire paycheck or to individual earnings items.
The assigned amounts show up in the Profit
& loss by class report to give you a more complete picture of how much each class is costing you.
Turning on this option does not affect existing transactions.
Where to find this preference:
Open the payroll and employees preferences.