QB Issue Resolution:

Yes, you’re right. While we can assign a class per wages in QuickBooks Desktop, in QuickBooks Online, we can only use one class for each employee.


As a workaround, you can create a journal entry to offset the payroll expense created by the paycheck and separate it to different lines. This lets you assign a class as you wish.


Here’s an example if payroll expense is for Class 1:

  • Credit payroll expense (Class 1)
  • Debit payroll expense (Class 2)
  • Debit payroll expense (Class 3)

This way, the payroll expense appears on your class 2 and class 3. Please keep in mind that the payroll and journal entry must have the same date.


Since this workaround is for reporting purposes, payroll-related reports won’t be affected such as Payroll Summary.


This is applicable when you run Profit and Loss or any Quickreport.


Here’s an article for future reference: Set up class tracking.

Resolution for Issue 'Allocating payroll across multiple classes' available: Yes (Solved).
Source: Intuit Community forum.

Allocating payroll across multiple classes: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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