The Premier level of QuickBooks offers an additional option to price levels. Not important, and the difference is small, but the question sometimes arises from someone doing a lot of discounting by customer in their business. QuickBooks uses a different calculation for each of the two methods. Using a 15% Discount Item (a different blog post), results in a different customer price than using a 15% Discount Price Level. Now, without the need for a discount item, the lower price comes up automatically for this customer. To specify that a certain customer should receive a certain price level, access the Payment Settings tab in the customer edit window. Then QuickBooks will always use that price for that customer without any ‘reminding.’ 99 and many others.Ī powerful feature in the use of price levels is assigning a certain price level to a certain customer. The rounding has been set so discounted prices will show as whole dollars. We’ve named our new price level “15% Discount.” The price level will decrease item prices by 15%. The completed Price Level is shown in the above graphic. Then round in a way you wish prices to appear on your customer invoices. Set whether the price level is an increase or a decrease over the price set in the Item List. Name the price level so it can easily be identified. Navigate to Lists->Price Levels and select New from the menu that pops up with a right mouse click. In QuickBooks Pro, only Fixed % price levels are available. Different types of Price Levels are available in the Pro and Premier levels of QuickBooks. Price Levels are found on the Lists drop down menu. If you use discounts on a regular basis or as the normal price for certain customers, Price Levels will offer an easy solution. There are several ways to offer discounts in QuickBooks. Enter the number of miles and QuickBooks will do the rest. Add this to an employee’s paycheck at the time of paycheck creation. There’s no limit, so we’ll leave that blank.Ĭlick Finish and that’s it. Usually the default rate will be the current federal mileage rate. It will be based on the number of miles driven.ĭefault rate and limit. Our payroll item IS based on quantity, not on hours. If the tax tracking is correct, the Taxes window should already be correct without any input from us. I’ve never seen an instance where something needed to be changed in this window. This is a reimbursement to an employee for miles driven for the company, it’s not taxable wages.Ĭhange the Tax tracking type selection to None.Ī few windows follow, allowing for additional information. The default when creating an Addition type item, which we are doing here, is Compensation. The selection in this window determines whether or not the amounts will be taxed, how the amounts will appear on payroll tax forms, and on W2s. Tax tracking type is always the most important decision when setting up any payroll item. If you like, you can make it a subaccount of Automobile Expense. I like to create an expense account called Mileage Reimbursement. Mileage Reimbursement seems like a good name.įollowing that, we’ll need to tell QuickBooks what expense account should be used when this item is added to a paycheck and QuickBooks needs to post the dollars to a specific expense account. In the next step we need to name the payroll item we’re creating. This is an Addition, right? We are adding an amount to an employee’s paycheck. Once we make this selection and click Next, the following window appears. There just isn’t enough flexibility in EZ Setup. I always choose the Custom Setup in the first window. From Lists->Payroll Item List, choose the Payroll Item button, then select New. The first step is to setup a payroll item. To reimburse an employee for mileage, I can easily add the amount to a paycheck. Subject to withholding, social security, Medicare, and more. Actually, working with a client, we discovered her mileage reimbursements were being reported as wages. It didn’t happen exactly that way, but close. Why was it costing her hidden fees and why was the employee upset? What could go wrong? She added mileage reimbursement to her employee’s paycheck.
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