Sunday, December 13, 2009

QuickBooks: Payroll Integration Workaround

If you do not use Paychex, ADP or Paycycle (that offer QuickBooks integration), you can still enter the payroll prepared by your payroll service.

Your payroll company provides you with a complete set of reports. If you need year to date gross wages per employee you can refer to these reports

Your labor costs include the gross wage you pay to your employees and the employers share of payroll taxes paid.

* Set up an expense account, "Wages Plus Payroll Taxes Paid".
* Set up two Vendor Names, "Net Pay" and "Payroll Tax Payments".

* Using a Write Check transaction, uncheck "To be printed"
* For each net pay, enter the check number and the vendor "Net Pay"
* Enter the amount of the check
* Code to "Wages Plus Payroll Taxes Paid".

Note: It is not necessary to use the employee's name, if you need detail on employee's wages, your reference will be the payroll reports produced by the payroll service company.

Using Write Check transactions, uncheck "To be printed" and, for the taxes withheld from your checking account, leave the check number field blank

* Enter the vendor "Payroll Tax Payments"
* Enter he amount of the tax to be withdrawn
* Code to "Wages Plus Payroll Taxes Paid".

For amounts withheld from the paychecks for loan repayments or for amounts that will be remitted by your company to a vendor (for example 401K, health ins or other benefits), a journal entry will need to be made. Do the following:

* Select the Banking menu > Create journal entry
* Debit "Wages Plus Payroll Taxes Paid" for the amount withheld
* Credit the correct category (401K, health insurance, etc.)

At the end of the year you will allocate (with a journal entry) the "Wages Plus Payroll Taxes Paid" into the two totals - one for wages, and one for payroll taxes paid.

Subtract the Medicare Wages on the W-3 issued by the payroll service company from the amount in the account "Wages Plus Payroll Taxes Paid" and create a journal entry to reclassify it to its own expense account "Payroll Tax Expense"

Debit "Payroll Tax Expense" (for the calculated amount)
Credit "Wages Plus Payroll Taxes Paid"

7 comments:

alexander said...

A good blog. Found it very interesting.

Sarah said...

nice post!

Belle said...

Quickbooks is the perfect program to manage payroll tax. Services it gives makes the business flow runs smoothly and swiftly. We had just started our small business. Payroll service I must say did justice in replacing manual recording. The system didn't just brought convenience but it also opens a privilege for the company to reduce labor cost and increase company savings.

Tara Snow said...

This is great. I have had my fair share of issues with Quickbooks, but by using these tips and going to the third party client OneClickStatements here , working with Quickbooks has been all good.

Thomas pedro said...

With an end goal to step back a portion of the youthful families that were before the foundation of the town, a gathering of group pioneers shaped Yellow Springs, Inc, a Community Land Trust went for lowing and center pay families purchase moderate homes. The non-benefit agreeable additionally attempts to continue lodging costs at a sensible level. Cash Advance Chicago

Thomas pedro said...

Consider it along these lines, the main advances that are wraparound are what is known as assumable credits. These credits are the ones where the borrowers can conclude that they need to put their cash into purchasing a house. cash advance san-diego

marko said...

Treasuries of different developments - 2-year, 10-year and 30-year notes, to give some examples. These ventures are upheld by the U.S. government as are viewed as a place of refuge in indeterminate circumstances. Check Cashing San-diego