How to reconcile the labor distribution to the payroll register

This article discusses how to reconcile the labor distribution to the payroll register for a company that is using a third-party, outside payroll system such as ADP, Paychex, Inuit Online Payroll, etc. It does not discuss this process when using Quickbooks Desktop payroll.

The labor distribution is a process that allocates labor costs to jobs, service items, and general ledger accounts in Quickbooks. It is a process that is required for DCAA compliance. The allocation is based on the employees' timecards, which are either entered into Quickbooks or imported from a third-party timekeeping system. A mock payroll is run, which produces the labor distribution. Once  the labor distribution is created, it is reconciled to the payroll register obtained from the third-party, outside payroll system. This article discusses the last step, the reconciliation of the labor distribution to the payroll register.

Step 1:

Select the "Labor Distribution Report by Employee" from the drop down menu in Quickbooks. You will find this report in the Memorized Reports folder and the DCAA sub-folder (see here about the DCAA sub-folder).

 

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