Seting up Bi-Weekly paychecks

Hey all,
I’m switching over from weekly to bi-weekly paychecks.

Because I do my own paychecks with Quickbooks I need to know how you guys have your paycheck stubs look.

Say it an employee worked 30 hours 1 week and 28 hours the next week do you:

A. put the total time worked: 58 hours in one line and tax from there?
B. put line 1 as 30 hours then line 2 as 28 hours, then tax?

Thanks all!

if someone could post a pic (minus any personal info of course) that would be great!

I pay twice a month and just lump all the hours (i.e. 1st-15th) together and then take taxes out based on the IRS guidelines for semi-monthly pay.

Sounds like you may be making it a little more difficult than it needs to be by breaking it down to weekly.

In Quick Books 2008, in the employee set up, under payroll, there is an option for pay frequency. set it to bi-weekly. It seems to me when I set mine up using qb98 it was an option for the whole company.
When you run payroll plug in the hours for the two week period and quick books will calculate the taxes from the biweekly tax table. It will show on the pay stub as hours worked and taxes withheld for the current pay period and the YTD. It will also show the pay period as being two weeks, for example, 3/30/09-6/12/09
If you are doing all your own stuff, make a dummy copy of your company and you can use it to test changes before you make it on the real thing.


I don’t know what version of QB you’re using, but I use QB online. A bit more expensive, but it suits my needs better atm. QB online comes with payroll. I have a monthly salary, bi-weekly salary, and bi-weekly hourly. The breaks are as follows:

  1. Monthly salary - paid on the last day of the month for inclusive period of the month: 1Feb-28Feb

  2. Bi-Weekly salary (and hourly) - starting on Thurs for 14 days through Wednesday: Paycheck is printed and presented the following Thursday. QB computes and tracks all related taxes & benefits.

Hope this helps.

We also pay bi weekly.

To change your frequency go to edit on the top of the screen
Click payroll and employees
Click employee defaults

Change it to bi weekly.

We total our hours for the two weeks (of course in our state overtime is based on weekly so keep that in mind when totaling)

Our items in payroll are broken down into jobs. (Cook, Wait, Drive, Host, Manager) I do this so when I do a work comp filing it breaks it down easier.

Also our payroll is always a week behind so I have a week to do paychecks.

So our pay period ended last Sunday and they will get paid monday.

We have to pay taxes each payroll and quickbooks is set up with the liability accounts to tell me what to pay and when but it taxes for the full two weeks.

If I can figure out how to put one on here I will.


I’ve already had a 1 week behind payroll in place for a year now. In order to continue the hold of the paycheck to the next pay period i’m going to set it as a 15 day processing time between the day payroll ends and the actual date paychecks are issued

Pay Period Starts - January 1
Pay Period Ends - January 14
Checks Received - January 29

I figure i’ll start this the first week in Augest so the employees have enough time to prepare for another 1 week hold on their paychecks.

I’m using Quickbooks Premier Edition 2009 and I see the “Pay Frequency” selection in each of the employees “payroll info” tab.

Kris, when you say your payroll is broken down into jobs (Cook, Wait, Drive, Host, Manager)… how did you do it? And how do you get a report in QB to show each job for Work Comp?


Wow, 15 days to get paid!? I’ve never heard of such a long time from pay period end to paycheck given. I wouldn’t put up with that as an employee. A new employee starting at the beginning of the period will have worked an entire month without being paid a dime.

What is the reason for doing that?

I pay every 2 weeks also, pay period ends on a Sunday, checks go out 4 days later on Thursday.

You go to edit and then click payroll and employee and then click employee defaults. (If you do this for the frequency you won’t have to change it every time you enter an employee because it will be the default. You can also do this with your payroll items (host, cook, wait, tips, employee meals, insurance etc) So when you run payroll there will be automatic things which show up. (You can still change it with each employee but for us most employees will have the same payroll items) go look at what I am talking about it will make more sense.

As for the payroll “types” such as host, cook, drive. You just enter it in as a payroll item. You can do this in the above area or at the creating paycheck window. It will say add new. You will probably want to start doing it at the begining of a quarter or year. Then when you run a payroll report it is catagorized with each individual payroll item.

If you are processing a paycheck now what do you have listed under payroll item? It would be the first colum in the create paycheck window.

Can anyone tell me how to include a scan image in a post?

Also…I would really think twice about your two week scenario. I don’t think it will go over very well with your employees. A week is more than enough time to run payroll. And I would be careful calling it a hold…we just call it a week behind so we have time to do payroll.


Kris do you have an account at a photo sharing site like photobucket. If so, save the image there and copy the image code and post it here the picture will automatically appear like this:

or you can copy the link that looks like this … thsign.jpg then paste it into your post, highlight it and click on the img button. If you do not have such an account, IM me I will send you my e-mail and I can post it for you.


I pay every 2 weeks also, pay period ends on a Sunday, checks go out 4 days later on Thursday.

The 15 day “hold” is the same thing as holding the first paycheck. Paychecks are every 2 weeks so there is your 14 days and the extra 1 day is because paychecks are issued on a friday.

I’ve learned from the first 3 years of being open to ALWAYS hold a check until the next pay period. Back when I was working for “the man”, i always woundered why when i started a job they would hold the first paycheck (which for 4 different companies i worked for all had bi-weekly and payed 4 weeks after i started). Now with having employees i know why :roll:

Kris, everyone is just listed as “Hourly Rate”
I’m looking at the “Edit Employee” screen under just a regular employee, As for “payroll items”, there are 2, Under “Earning: Item Name” is where I have “Hourly Rate”… and under “Additions-Deductions: Item Name” I have the taxable tips.

So, why? Why would you need to “hold” the first paycheck? Not to be argumentative, I’m just wondering what the purpose is. I’ve been in the workforce for 30 years, and I’ve never heard of holding the first paycheck.

Heres an example, at the start of employment the employee is given… let say an apron… which would be company property. The employee uses it for the week they work… comes in on payday to pick up there check… gets it… and never returns again… thus company property is gone. If you had held the last paycheck, you can enter the payment for the property and deduct it from their next paycheck (or course this should be in your employee manual so that it is “ok”).

Kris, everyone is just listed as “Hourly Rate”
I’m looking at the “Edit Employee” screen under just a regular employee, As for “payroll items”, there are 2, Under “Earning: Item Name” is where I have “Hourly Rate”… and under “Additions-Deductions: Item Name” I have the taxable tips.

You can add a new payroll item such as host, cook, drive by clicking on the “hourly rate” payroll item. It will say add new up on the top. You just add new ones. There are several places to do this including the edit employee you are talking about.

As for the “holding” the paycheck that is why we do it a week behind (in addition to it gives me time to do payroll) All final charges are taken out of final check which they would get after they quit (in your scenario) You will always have a week of wages. But hey if your employees go for it so be it.


I typically don’t have people that don’t work at least 1 day the 4 days between the end of a pay period and giving them their check. So, for example, if someone picked up their check on Thursday for the 2 week period that ended the previous Sunday (4 days before), they will have normally worked at least 1 day on the new pay period (either mon, tues, weds or thur). So if they don’t return, there is normally enough money in the “last” check to do those types of deductions.

Couldn’t you just hold the check for a week - or do you have people that don’t work entire weeks at a time? Or do you have very expensive aprons? :wink: Even someone making minimum wage could have over $500 being held, which I think would far exceed the value of anything that was given to them.

But, I guess as Kris said, if your employees agree to this, then more power to ya, I guess. Just doesn’t seem fair or legal to me.

If they want work, they have to agree. And as far as legal, once they start up and sign off on it, almost anything is legal… i’m also going to slip right for power of attorney into the hanbook as well :twisted: