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Replying to:
qbteachmt
Level 15

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Child Support is Never Employer Expense. It is diversion of takehome.

 

The Payroll Math is:

Gross Wages <== employer expense

Employer taxes <== employer expense

Everything else is deducted or withheld from Gross Wages

 

Example:

Gross Wages $1,000 Debit

Employer taxes $76.50 expenses (using only FICA for this example) Debit

Credit Payroll Liability for $76.50 for employer + the $76.50 for the employee FICA, + the employee income tax withholding amount, + child support deduction

Credit Bank for takehome

 

And later, the Check Expenses pay out the various Liabilities you held back. That is never expense, again.

 

And you don't use Liability if the PR service provider keeps all your funds up front = they impound the taxes up front.

 

Debit Gross Wages

Debit Employer tax share

Debit PR provider fee

Credit Banking for that total they kept

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