Set up Effective Dates for QuickBooks Online Payroll

QuickBooks Online Payroll now allows you to set up an effective date for payroll types. This means you can limit the use of these payroll types to specific dates or date ranges. It also means that you can effectively terminate a payroll item you've been using to pay an employee by setting an ending date for that payroll item.

Setting an Effective Date of a Pay Type

You can set effective dates for new Pay Types or for existing Pay Types. So why might you want Effective Dates for Pay Types (aka: payroll items)?

• To configure a one-time addition to an employee's Payroll and not be required to remove it after it's used. The "Unassign on" date essentially turns off the item.
• To configure a limited-time deduction to an employee's Payroll, and not be required to remove it after the limited-time period is completed. Once again, the "Unassign on" date prevents future deductions from being made.
• To track the time frame (starting date and ending date) for payroll items that frequently change on an Employee's paycheck.

Now, let's look at how to set up for new Pay Types and existing Pay Types with Effective Dates.

Setting Effective Dates for New Pay Types:

1) Go to Payroll, then Employees.
2) Select an Employee for whom you wish to add a New Pay Type.
3) From Additional Pay Types, select Add.
4) Select an existing Pay Type from the Pay types ˅ dropdown, or choose + New Pay Type if you wish to create an entirely new Pay Type.
5) Fill out the fields like Name, Rate, or Recurring Amount, if applicable.

Setting Effective Dates on an Employee's Existing Pay Type(s):

4) Update the Amount or Recurring Rate, if applicable.
5) Select an Effective on date.
6) If appropriate, select an Unassign on date, or choose No end date.
7) Click Save to finalize the changes to this Employee's Payroll.

In either case, you have set Effective Dates or Ending Dates for the specific Payroll Types and the specific Employee.

Note: While graphics reflected herein were taken from QBO Payroll running as part of Intuit Enterprise Suite, the instructions are specific for QuickBooks Online (SKUs) products supporting QBO Payroll. 

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Content (including graphic content) is based on Intuit source materials including media source content including website Help resources, and QuickBooks Online Payroll In-Product Help. Intuit content adapted by Insightful Accountant from Intuit sources is furnished for educational purposes only.

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