cost of living adjustment

How do you enter a one time cost of living adjustment in QB Enhanced Payroll for an employee? The company is unable to permanently give the key employee a wage increase so the board of directors decided to give them a cost of living adjustment from the last time the employee received a wage increase if the company could financially afford it. 

Answer

Hi Larry, 

Let me share few things on how to record the cost of living adjustment in QuickBooks.

You can record it as a payroll item to track individual amounts on a paycheck. 

Here's how:

  1. Click List on the upper menu.
  2. Select Payroll Item List.
  3. Click the drop-down arrow beside Payroll Item and select New.

However, I suggest you reach out to your accountant to help check which tracking type to use. 

You can also create a separate paycheck to pay a bonus to employee. Here's an article for more information: Pay A Bonus On Separate Paychecks In QuickBooks Desktop Payroll.

Leave a comment below if you have other questions. I'll make sure to get back to you.

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IntuitMariaS , Community Support Specialist
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