I must be doing something wrong, so let me break it down for you. Maybe you can help me find the error. The first thing I do is after I call in to give the third party payroll services and give them my employees hours. Then they give me a break down of what is to be charged to my bank account the following day.
Using the numbers I create a Journal Entry:
employee Gross Wages (debit) 10,859.58
employee Social Security (debit) 835.20
employee Medicare (Debit) 195.33
Employee Fed income tax 1159.03
employee state income tax 121.24
employer Social Security (debit) 835.20
employer Medicare (Debit) 195.33
employer Fed Unemp.(debit) 21.24
Employer state unemployment (debit) 120.38
Employer State employee Training (Debit) 3.54
Paychex processing admin fees (debit) 618.98
Delivery fee (debit) 11.00
Checking Account (credit) 15,276.57
Then do I check my balance sheet and I have a negative -3787.01 in the payroll liabilities section. How do I zero it out. Am I doing something wrong?
