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How to Set up a Salaried Employee in QuickBooks

How do you define the term salary employee?

A salaried employee is referred to a salaried employee or a worker who is paid by the organization a fixed amount of compensation called salary. For instance, a salaried employee might earn $45000000/annum. In other words, we can say that whenever an employee is paid a salary per month rather than hourly. Such employees receive a complete amount of compensation in their accounts independent of how many hours they have given to the company.

Categories of employee:

Employees are divided according to the type of work & their method of getting paid. They are paid either salaried or hourly. The major difference between them is a salaried employee is given an annual payment named salary which is further categorized into pay period according to the organization criteria. For example, some are contract employees.

Why salaried employees are written in hours?

Salaried employee depends upon the accurate number of hours the employers work. QuickBooks software automatically converts salary employees into hourly rates automatically. It includes wages calculation according to sick leave and vacations, unpaid time off salary adjustments, overtime payment & more.

How to set up a salaried employee in QuickBooks Desktop Payroll?

Before setting up a salaried employee in QuickBooks the process to add an employee is mandatory. It will assist you to manage entire information of the employee including tax-exempt, Visa, etc. 

How to add an employee in QuickBooks software?

  • Locate Employee & then choose Employee Center
  • Click on New Employee & fill the required information
  • Hit on Personal option and enter the fields.
  • Choose Address and Contract and afterward finish writing entire fields
  • Click on Payroll Info and write the fields & compensation 
  • Choose Employment info & fill the required entries
  • Hit the OK button.

Default employee setup:

Below are the instructions:

  • Navigate Edit option & choose preferences
  • Click on Payroll and Employees succeeding step is to select Company Preferences
  • Hit on Employee Defaults 
  • Modify entire fields that you require
  • Click OK twice to save the applied modification. 

How to set up a salaried employee in QuickBooks?

Each organization requires a salary payroll item for paycheck listings. Let’s learn the instructions to set up a yearly salary payroll element

Follow the steps:

  • Navigate lists from QuickBooks Desktop menu and after that click on Payroll Item List
  • Discover the drop-down named Payroll Item, select New
  • Click Custom Setup then hit Next button
  • Choose Wage to proceed with Next
  • Locate Annual Salary and succeeding Next option
  • Find out the type of pay usually Sick & Vacation pay is preferred options and remaining pay types must be written as Regular Pay
  • Hit Next
  • Write the salary item name to simplify identification
  • Click Next
  • Choose the expense account meant for monitoring and tracking wages. Then Choose Finish
  • If needed, repeat entire steps to input other associated salary items.

How to set up a salaried employee on QuickBooks online standard payroll?

  • Locate the left menu and click employees
  • Now choose the employee listed in the dialog box that you want to edit
  • Hit the edit tab located next to Pay
  • Click the edit icon positioned on the side of Section#3
  • Enter the payment type that is required to apply the change from a drop-down button(There will be two options hourly or yearly)
  • Write the salary amount
  • Choose done twice.

What are the steps to set up an hourly salary payroll item?

  • Discover the lists and choose payroll item list
  • Choose Payroll item then click New
  • Click custom setup then hit Next
  • Locate Wage after that choose Next
  • Discover Hourly wage
  • Choose a suitable pay type
  • Hit Next
  • Fill a name linked with pay item and then choose next
  • Click Finish.

How to reach us:

This was all about salary employees & how to set up a salaried employee in QuickBooks. For any further assistance related to QuickBooks errors 2020, don’t hesitate to call QuickBooks technical number +1-800-816-6849. The team carrying years of experience are there available24*7 to tackle your all queries instantly. Each member of the team is trained enough to quickly find the core of the error and provide you a better resolution in a single call. You can also use online chat services or email for instant assistance.

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