Set Employee’s default in QuickBooks

2009_0914_01_employeeprofile After you have set up your payroll item; next, we need to set up every employee’s payroll default.

Example:

Employee’s name: John Tan
Monthly Salary: $1,055.00
Transport allowance: $400.00
CPF Employee: 20%
CPF Employer’s contribution: 14.5%

From the employee’s profile, change the tab to ‘Payroll and Compensation Info’.

Under the Earnings:

Item name: select Basic Salary
Hourly / Annual Rate: Enter 12,660 (i.e.: 1055 x 12 = 12,660.00)

Under the Additions, Deductions and Company Contributions:

1st row:

Item name: Transport Allowance
Amount: 400.00

2nd row:

Item name: CPF Employee
Amount: -291.00 ((1055 + 400) * 20%)

3rd row:

Item name: CPF Employer
Amount: 211.00 ((1055 + 400) * 14.5% = 210.975, round to 211.00)

Additional information:

  • Add a new monthly pay schedule.
  • You can select Cheque for Pay Method if your pay out is via cheuqe payment.
  • Click the Taxes button, under the Tax Code, select ‘8-No TaxC’ from the drop down list for the non tax code.

Leave the rest of the information blank.

Once default is being set up, you can proceed to pay your employees.

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