Financial Exchange: Employee Hours Worked

Use Time Clock to Record Employee Hours

Pro

Requirements for this Feature in QuickBooks Financial Software:
Using QuickBooks Financial Software 2008 - 2010*
General time tracking preference enabled
Hourly employees set up to use time data for paychecks

In your QuickBooks financial software:

1. Select the Employee Center icon and then select the Employees tab.

2. In the Name column, double-click the employee's name or select Edit Employee.

3. Select the Change tabs drop-down arrow at the top of the window and then choose Payroll and Compensation Info.

4. Make sure that the check box labeled Use time data to create paychecks is selected.

5. Select OK to save your changes.

6. Repeat for other hourly employees.

Tip: If you frequently add new hourly employees in QuickBooks, you might want to change your employee default setting to use time data for paychecks. From the Employee Center, select Manage Employee Information and then select Change New Employee Default Settings.

In your QuickBooks financial software:

1. From the Edit menu, select Preferences.

2. Select Time Tracking from the left menu.

3. On the Company tab, answer Yes to Do you track time?

4. Select Save.

If you use Time Clock in Point of Sale to record employee hours worked, the time entries can be sent to your QuickBooks financial software for payroll purposes. A corresponding time record is created in QuickBooks for each time entry recorded in Point of Sale.

To send employee hours to QuickBooks:

1. Setup your employees in Point of Sale as hourly and use Time Clock to record hours worked.

2. On the Financial page of your Point of Sale company preferences, select the check box labeled Send employee hours worked to QuickBooks using payroll item: <selection>.

- The default payroll item used is Regular Hours. You can change this selection to any hourly payroll item already setup in your QuickBooks financial software. If time worked needs to go to a different payment item than selected (overtime for example), you will have to modify the time entry in QuickBooks.

4. Select Save.

5. Run Financial Exchanges with QuickBooks to send your time records with your other data.

Learn more about QuickBooks Payroll solutions

Sample time entry created in QuickBooks

No entries are made in the Customer Job or Service Item fields and the Billable check box is not selected. You can also view or edit an employee's time on the Weekly Timesheet. Access the time tracking tools in QuickBooks from the Employees menu.

Modify a time entry in QuickBooks

You may find it necessary to modify time entries after they have been sent to QuickBooks:

- To assign time to a different payroll item, such as for overtime, holiday or sick pay

- To add information for a customer job, service item, or to mark the time as billable

- To correct a time entry error after a record has been sent to QuickBooks

1. In QuickBooks, from the Employees menu, select Enter Time > Use Weekly Time Sheet.

2. On the Weekly Timesheet form, select the employee's name from the drop-down list and ensure the correct work week is selected.

In this example, Kevin Associate has worked 10 hours on Wednesday. This is his weekly timesheet in QuickBooks after receiving the time entries from Point of Sale.

Because we pay overtime for more than 8 hours in a day, we must modify his timesheet.

3. Click on the 10 hour entry for Wednesday and change it to 8 hours.

4. Add a new row to the time sheet, selecting OT as the payroll item and entering 2 hours for Wednesday.

5. Save your changes.

Now, Kevin Associate will be paid correctly for his overtime hours. Set up additional payroll items as needed in QuickBooks to meet your needs. Note that this edit does not update the time record in Point of Sale, which will continue to show 10 hours worked on Wednesday.

Notes:

- Once time records have been sent to QuickBooks, they can no longer be edited in Point of Sale.

- Point of Sale creates employee records in QuickBooks, if they don't already exist, in order to post time records. If you have two employees with identical first and last name they will be differentiated in QuickBooks by appending an incrementing number in curly brackets to the last name, i.e., Joe Shmoe and Joe Shmoe {2}. QuickBooks ignores the curly brackets (and anything inside) when printing the employee name.

- (Multi-Store) If time records come from multiple stores with identical first and last names, Point of Sale assumes they are for the same employee. If they are two separate employees, differentiate them in Point of Sale in either the first or last name fields.

- Point of Sale does not send tip or commission information to QuickBooks for payroll purposes. This information is available in Point of Sale reports.

- * If you are on an earlier version of QuickBooks Financial Software, your time entries are not sent. However, the Time Clock Weekly Summary report in Point of Sale is formatted the same as the employee Weekly Timesheet available in QuickBooks, allowing you to quickly transpose your time worked information for payroll processing.

Related Topics

Financial Exchange Overview