How to set up a yearly salary payroll item
You will need a salary payroll item for each type of salary you wish to list on a paycheck. For example, you could create separate salary items for Sick or Vacation time, or for company officers vs. other employees. Each salary item can be used for mulitple employees, since specific salary amounts are entered in each employee's payroll record.
You have an active payroll subscription with employees added.
You will have created a salary payroll item and added it to the employee record.
To set up a yearly salary payroll item:
In QuickBooks Pro/Prem, go to Lists> Payroll Item List.
- Click Payroll on the top.
- Click Setup and Maintain and choose View/Edit Payroll Items.
At the bottom left of the Payroll Item List, click the Payroll Item dropdown button, and choose New.
Select Custom Setup and click Next.
Select Wage, and click Next.
Select Annual Salary, and click Next.
Select the type of pay. Vacation Pay and Sick Pay are each specific options. All other types of pay should be entered as Regular Pay.
Enter a name for the salary item that easily identifies it. For example, if you want to track officer wages separately from other employees, enter a name such as "Officer Salary".
Select the expense account used for tracking wages, and click Finish.
If necessary, repeat these steps to enter other salary items.
You can then add the new payroll item to the employee's setup so that it automatically shows when creating paychecks.
- Go to Employees on the top menu bar.
- Select Employee Center.
- Double-click on the employee's name.
- From the Change Tabs drop-down, select Payroll and compensation info.
QuickBooks 2013: select the Payroll Info tab.
- Under the Earnings box in the item name columns, click in a blank area.
- From the drop-down arrow, select your Salary Item and then enter the employees annual salary.