After-the-fact payroll in QuickBooks is implied to the checks which are already issued. It is one of the important aspects of QB Payroll. This type of payroll lets the accountants authenticate, add, or edit the after-the-fact paychecks from one single window. To enter it in QuickBooks Desktop or Online, you can add the checks on the Transaction Data Entry window. Or, you may add the prior payment to the YTD Amounts screen. If preferred, this then can be done by batch payroll. While you learn to enter it, building more knowledge of the aspect should be considered.
What is After-the-Fact Payroll in QuickBooks?
In QuickBooks, after-the-fact payroll is a feature. It lets business owners prepare for the payroll taxes. Moreover, the calculation of the payroll can also be done manually with it.
The functioning of the feature depends on the payment frequency and hourly rate. For instance, an employee is working full-time. He is earning $10 per hour biweekly. Then the calculation for this pay schedule will be nearly $10/hour x 80 hours, thus, equalling $800.
Note: QB Payroll checks are created and issued by the clients. In addition, this process is done outside of the program. To match the details with yours while using after-the-fact payroll in QuickBooks, you will have to personalize the data and sync it with the account. Also, properly enter the name, amount, and account number.
How to Turn on After-the-Fact Payroll in QuickBooks?
The after-the-fact payroll process is a complete compliance method. By using it, users can process the client payrolls smoothly including the pay period. For this, it is important to turn on the manual payroll feature. You need to find Preferences in QuickBooks Then you can find Payroll and Employees. As you come across manual Payroll, you will be able to turn on after-the-fact payroll in QuickBooks.
- Select the “Preferences” menu.
- Then, tap on “Edit”.
- Click the “Preferences” option given here.
- Scroll down and find “Payroll and Employees”.
- From here, choose “Company Preferences”.
- Hit the “Full Payroll” button.
- Now, the user has to click on the menu for “Help”.
- Please select “QuickBooks Help”.
- For activating after-the-fact, type “Manual Payroll” in the search bar. When you see the results, select the option to manually calculate your payroll taxes.
- After this, you can set the company file so that the setting for manual calculations for payroll can be used.
- Select the link for “Manual Payroll Calculations”.
- When the “Help” window is displayed, you will find the option where it asks you to be sure about manually calculating the payroll taxes.
- After that, you have to tap on the link for setting up the company file for a manual calculation. You will also receive the confirmation notification.
- Pick the “Lists” tab.
- Click on the “Payroll Item List”. You will find that the software has already set up some basic details for payroll tax items. The remaining fields can be filled by you.
It is also recommended to go through the payroll setup wizard to turn on the feature and complete the setup. For this, go through the Employees tab and select Payroll Setup. The wizard will help you enter the payroll data details. In addition, you can set up a time tracking option against various projects and jobs. This will assist in tracking the time of your employees.
Entering After-the-Fact Payroll in QuickBooks Desktop & Online
It can be simple to record information using the payroll feature with YTD Amounts. This is a screen that can be launched with a shortcut in the accounting software. You can also learn how to enter the after-the-fact payroll in QuickBooks Online/Desktop with the Transaction Data Entry screen. For using this method, you will need information such as the check number.
Option 1: Using YTD Amounts
Year-to-Date (YTD) Amounts window in QBDT allows you to enter the after-the-fact payroll checks. You can launch this screen and type your prior payment amounts in it. Then continue creating the payments. This will automatically add the payroll taxes of prior years. With this, the payroll checks should get entered or recorded in QuickBooks Desktop.
- Use one of these key combinations
- “Ctrl + Shift + Y”
- “Ctrl + Alt + Y”
- Press “Next” when YTD is running.
- Continue pressing “Next” until the “Enter Prior Payment” field displays.
- Now, select “Create Payment” so that you can add the previous payroll taxes.
Besides adding the after-the-fact payroll in QuickBooks Desktop, it should also be noted that the payroll liability payments that are not taxed (made in previous years) can also be added.
Option 2: With Transaction Data Entry
An important method for entering the after-the-fact payroll in QuickBooks Online is to add the check directly to the Transaction Data Entry window. From this window, you can enter the required details such as the date and check number. Then you have to add E in the dedicated field. This process also helps you to add the net pay account along with entering the QuickBooks Online after-the-fact payroll.
- To get started, click on the “Transaction Data Entry” window and add the checks directly.
- Then, enter “E” in the “E/V” section after you enter the check number and date.
- When you see the “Payroll Data Entry” window, your system will know that you are preparing the “Employee” check.
- It will also include the “Net Pay” (Accrued Liability account) on the “Automatic Payroll Posting” window.
Generally, users can prefer this method when the regular transaction and payroll checks are prepared from the same bank account. If required, then you can batch payroll as well. For this, you can use the Manual Processing Input window.
Winding Up
After-the-fact payroll is used for checks which are already issued. For recording them in QuickBooks Online and Desktop, you need to make sure that the feature has been activated. Thereafter, you can pick a suitable method to record this. This will also depend on the information you have.