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Enable Job Costing, Class & Item tracking for non-earnings expense items on paychecks

This preference lets you track payroll costs by job, class, or service item.

What happens when you select this option

  • 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 described above.


    Let's say an employee earns $1,000. On their paycheck, you split their wages between two jobs, like this:

    Splitting hours between jobs

    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.

Tracking payroll costs by class

  • 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.

    set a preference
  • 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.

Effect on existing transactions

Turning on this option does not affect existing transactions.

Where to find this preference:

Open the payroll and employees preferences.

Opening payroll and estimates preferences
12/10/2017 6:08:43 PM
PPRDQSSWS904 9142 Pro 2018 70009b