How to Assign Classes to Payroll Expenses in QuickBooks
By Mahoney
Assigning Classes to Payroll Expenses in QuickBooks
Using Classes in QuickBooks Online (QBO) or QuickBooks Enterprise Solutions is a smart way to track payroll expenses by department, location, employee type, or project. If you process payroll within your QuickBooks file, enabling Class Tracking ensures your payroll costs are accurately categorized – giving you better visibility and control over your financial data.
How to Enable Class Tracking in QuickBooks Online Payroll
- Click the Settings (gear) icon in the top-right corner.
- Select Payroll Settings from the first column.
- Click the Class Tracking tab on the left.
- Click the Edit (pencil) icon to enable class tracking.
- Choose one of the following options:
- Assign one class to all employees.
- Assign a unique class to each employee.
- Click Continue.
- Click Done.
- Click OK twice to save your changes.
Assign Classes to Employees in QBO
Once Class Tracking is enabled:
- Go to the Payroll menu and select the Employees tab.
- Click on an employee’s name to open their profile.
- Use the Class dropdown near the top-left to select the appropriate class.
- Click OK to save.
How to Enable Class Tracking in Enterprise Payroll
If you’re using QuickBooks Enterprise Solutions and process payroll in your company file:
- Click Edit in the top-left menu bar.
- Select Preferences.
- Choose Payroll & Employees.
- Check the box labeled Job Costing and Class Tracking for Paycheck Expenses.
- Click OK to save.
Assign Classes to Employees in QuickBooks Enterprise
To assign a class to each employee:
- Click Employees in the top menu.
- Select Employee Center.
- Double-click the employee’s name to open their profile.
- Go to the Payroll Info tab.
- Use the Class dropdown near the top-left to assign the class.
- Click OK to save your changes.
What Happens Next?
On your next payroll run, both payroll and payroll taxes will be posted to the class you’ve assigned – making it easier to analyze labor costs across your organization.
Note: Mahoney was not compensated to talk about this product and does not endorse or otherwise receive monetary or non-monetary benefits from discussing any software products. Consult your accounting or contact us at Mahoney.
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