Setting Up Payroll Items in QuickBooks


Figure 1
Figure 1
How do I set up an Employee to use time data to create paychecks in QuickBooks?
In order to assign payroll items to time entries created for an Employee in QuickBooks, the Employee must be set to "Use time data to create paychecks". You can set up an Employee to "Use time data to create paychecks" by doing the following:
  1. In QuickBooks, open up the "Edit Employee" window for your employee.
  2. In the drop-down select at the top of the "Edit Employee" window, choose "Payroll and Compensation Info."
  3. In the Payroll Info tab, about half-way down, you will see a checkbox that says "Use time data to create paychecks" (see Figure 1).

    To enable payroll items for this Employee, make sure this box is checked, and make sure you have an Earnings- Item Name and Rate entered (for example, you might have an Earnings Item "Salary" with the rate "25.00"). The Item Names entered here are the payroll items that will be available to assign to time entries in Minute7.

    To turn off payroll items for this Employee, uncheck the box.
  4. Click "OK" to close and save your changes.
When I select an Employee for a Minute7 user, I see a note that says "QuickBooks does not know the payroll status of this employee." What does this mean?
If you haven't used QuickBooks to enter time for an employee before, QuickBooks may not know what payroll settings to use for that employee, so QuickBooks won't allow Minute7 to sync time entries until you explicitly tell QuickBooks whether the employee uses time entry data to generate payroll checks. Usually, this problem occurs with new employees in QuickBooks, since QuickBooks likes to have the payroll preferences for an employee explicitly set before allowing any action to be recorded for that employee.

You can help QuickBooks clear this setting up for itself by doing the following:
  1. In QuickBooks, open up the "Edit Employee" window for your employee.
  2. In the drop-down select at the top of the "Edit Employee" window, choose "Payroll and Compensation Info."
  3. In the Payroll Info tab, about half-way down, you will see a checkbox that says "Use time data to create paychecks" (see Figure 1).

    If this is a feature of QuickBooks that you use, make sure this box is checked, and make sure you have an Earnings- Item Name and Rate entered (for example, you might have an Earnings Item "Salary" with the rate "25.00").

    If this is not a feature of QuickBooks that you use, first check the box, and then uncheck it so that QuickBooks registers that a choice has been made.

    (If you are unsure whether you use this feature, or have never heard of it, chances are you don't use it, so check and then uncheck the box to let QuickBooks sync with Minute7.)
  4. Click "OK" to close and save your changes.
These steps should set QuickBook's awareness of your payroll settings, and you should then be able to sync and manage payroll settings correctly.
How do I add payroll items and rates for an Employee in QuickBooks?
Each Employee in QuickBooks can have payroll items, also known as Earnings Items, and wage rates associated with him or her. It is essential to have these payroll items set up in QuickBooks in order to add time entries for an Employee who is set to "Use time data to create paychecks". You can set up payroll items for an Employee by doing the following:
  1. In QuickBooks, open up the "Edit Employee" window for your employee.
  2. In the drop-down select at the top of the "Edit Employee" window, choose "Payroll and Compensation Info."
  3. In the Payroll Info tab, click on the first row in the box marked "Earnings". Click on the down arrow that appears in the row to select from your company's available payroll items, or select <Add New> to add a new payroll item.
  4. Add a rate for this Employee for this payroll item under "Hourly/Annual Rate".
  5. Click "OK" to close and save your changes.