The Labor Distribution calculates and allocates labor costs based on timesheets and payroll wage payments for W2 employees (and in special cases, 1099s and subcontractors) and posts the labor costs to both the general ledger labor accounts and the projects in QuickBooks Online. This article shows how to set up the Labor Distribution module in GovBooks by creating a Pay Cycle, setting up Employees, and calculating and posting the Labor Distribution to QuickBooks Online.