Thanks for the response. When I do what you say as a time report, it lists the labor by class, but I don't have an arbitrary "cost" setup per employee so it just shows as a zero cost.  Even if I did, the labor cost wouldnt be accurate as QB would simply multiply the arbitrary $/hr cost by the hours charged.  Why doesn't QB track the actual labor cost associated with those hours per employee?  (Not allocating employer taxes against the same class code is another complaint of mine as well!!) When I enter timesheets in QB payroll, I take the extra time to enter each employees hours by a customer and class code.  Every employee hour paid is accounted for by project and class code.   

What you described allows me to look at labor alone, but why doesnt QB consider project labor as an expense when I run a profitability report?  For example go to projects/project reports/project profitability and run the report.  Then change the "display columns by" to "Classes", and the new report strips all of my actual labor costs into a "Not specified" category when I know that I entered labor hours by class. 

Thanks,

John