Financial Exchange: Employee Hours Worked

In your QuickBooks financial software:

Select the Employee Center icon and then select the Employees tab.
In the Name column, double-click the employee's name or select Edit Employee.
Select the Change tabs drop-down arrow at the top of the window and then choose Payroll and Compensation Info.
Make sure that the check box labeled Use time data to create paychecks is selected.
Select OK to save your changes.
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:

From the Edit menu, select Preferences.
Select Time Tracking from the left menu.
On the Company tab, answer Yes to Do you track time?
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.

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.

QuickBooks Time Record

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

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

Weekly Timesheet in QuickBooks Financial Software

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

Click on the 10 hour entry for Wednesday and change it to 8 hours.
Add a new row to the time sheet, selecting OT as the payroll item and entering 2 hours for Wednesday.

Modified Weekly Timesheet in QuickBooks

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.