Staff percentage of time to two or more programs - How?

Question

We recently had our accounting firm in to discuss our financial statement with the Trustee's. One of the items they pointed out is that we ought to be allocating time spent by staff members, by %, to the appropriate program. For example, our Executive Director spends about 40% of his time on admin and 60% on research. I understand the concept, but can't figure out how do set it up in Quickbooks. I think Classes is the way to do it, but can't figure out how to assign more than one class to a person at a time so that a percentage of his/her pay is allocated to the appropriate area.

Using QB Pro 2003 for NPO's. Soon to implement the UCOA.

Allan Martin · Accepted Answer

Rethink using classes as the way to do it.

Terry McMorrow · Answer

Do you generate your on Paychecks?Terry

Mike Webb · Answer

Classes Do seem an awkward way.  What would you recommend?

Mike Webb · Answer

Yes, we do - sort of.  I do all the steps and then send the info to the bank for direct deposit.Mike

Allan Martin · Answer

Separate General Ledger accounts for each program. If QB does not meet your needs then move up the Software food chain.

Mike Webb · Answer

Forgive me if I seem dense, but if I created two "employees" for each person affected, using a G/L account to assign each to the right program, then pay each "employee" based on the percentage of time spent, would that be a solution?

[For example, if our Executive Director makes $100K and 60% of his time goes to Operations and 40% to Admin, I could create 2 "employees" for him so I could pay him 60% for Program A and 40% for Program B. He'd get full pay, but in 2 checks.] [Haven't experimented, but I think this'd work.]

Mike

L · Answer

Oh... I think NOT.Not if you are issuing payroll checks.Taxes and withholding would be a bloody mess if you payed one employee two seperate paychecks.

Mike Webb · Answer

I sorta thought it might.  Any ideas?

Terry McMorrow · Answer

Hi Mike,As long as you do not need classes for any other reason Example - Departments,Stores etc... then classes would be exactly what you are looking for.  Please see our discussions on payroll expenses on 5/17/2005 in this newsgroup.Quickbooks works extremly well with classes in a payroll check.  You would need to setup a research class and a Development class.  Once you have classes setup you generate a Payroll check - Make sure to make 2 seperate line itemsFor Example --Enter the following in the Earnings Grid of the New Paycheck Window_______________________________________________| Item Name    |  Rate   |  Hours   | Customer Job  |  Class--------------------------------------------------------------|Salary            | 600.00 | 20         |                        | Research|Salary            | 400.00 | 20         |                        | DevelopmentEverything in Other Payment and Taxes will be devided into these classes 60% research and 40% Development automatically by...

Allan Martin · Answer

What version (country) are you using that allows multiple classes in a payroll run?

Terry McMorrow · Answer

I use Quickbooks Pro 2005 - USATerry

Staff percentage of time to two or more programs - How?

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