Payroll items are required to be created according to your company’s needs for applying to individual employees. There are several types of payroll items and tax codes, as below:
| Payroll Item Type | Tax Code |
|---|---|
| Annual Salary | Compensation |
| Hourly Wage | |
| Overtime | |
| Bonus | |
| Addition | Non-Taxable, Fringe Benefits, Compensation |
| Deduction | Non-Taxable, Compensation |
| Company Contribution | Non-Taxable, Fringe Benefits, Compensation |
- Compensation – % of the tax rate is according to tax on salary range from the total amount of all payroll
items that set tax code as compensation. - Fringe benefits – this item is taxable at the flat rate of 20% of the amount paid.
- Non-taxable – this payroll item is not taxable
Notes:
- Semimonthly payroll items will be displayed on monthly pay slips. However, monthly payroll items will not be displayed in semi-monthly pay slips.
- Furthermore, for monthly Payroll, you have the option of paying employees this month or only recognizing expenses and tracking your payroll liabilities, then paying employees later, whereas, for semimonthly Payroll, you only have one option: you must pay on the day that semimonthly Payroll is due.
- Non-residents are taxed at a flat rate of 20%, which constitutes a final tax.
- Before you create a new payroll item, please first create a Chart Of Account in QuickBooks Online to track the expense, as it will requires to select mapping during the process of creation
- FaceAzure Online only allows you to edit to update the Payroll Item name displaying on the pay slip or enable the semimonthly option while not allowing other options. Please delete or make inactive If a payroll item which already been created with the incorrect chart of account mapping.
- FaceAzure Online does not allow you to delete payroll items that already have transactions. However, you can make it inactive if you stop using it.