You need to link the job-related payroll expenses to a sales transaction to categorize it under COGS, cmcclung. I can clarify when it becomes a Payroll Expense in the P&L report.

Once you enter the paychecks for the employees, the labor costs for each job will be visible on the Job Profitability report. Since the company covers their worker's payroll, it's recorded as Payroll Expense in the Profit & Loss report.

Additionally, the service item will appear under COGS after you add the billable timesheet to an invoice or sales receipt. This account type is for a profit center associated with customer tasks or jobs. Here's an article for more information about tracking the money you spend and make: Track job costs in QuickBooks Desktop.

Moreover, this material outlines the steps to personalize reports according to your needs: Customize payroll and employee reports.

This thread will remain open for additional questions about tracking jobs or reports. Post here anytime you need immediate help with QuickBooks.