Reconciliation Problem

Why do you have individual paychecks in the register if a service is paying your employees? That's the issue, I think.

If you're not paying the employees, but someone else is, then it's probably inappropriate to create individual paychecks in your company file.

If somehow it's appropriate, then probably the best thing to do is to create the paychecks in a dummy/wash bank account and then transfer the total amount the service debits your bank account from your real account to the wash account, which will increase its balance back to 0.00 - after accounting for any fees included in the debit.

Hi, I am not the original user, but would also like an answer to this.  To the answer the question, even though an outside entity is processing our payroll we still have to track each individual paycheck all the taxes and liabilities therein.  Is there a way to keep that individual data without processing individual paychecks to the register? Thank you!

Hi, I also have this question. Even though an outside firm is processing payroll, I still have to track each individual paycheck and all the associated taxes and liabilities therein. Is the dummy/wash account still the correct procedure or will that cause problems with those liabilities later? 

Our businesses are in the same situation.  The payroll company you're using should be giving you the journal entry for each pay period that will break down hourly pay, salary pay, company FICA expense, withholding, unemployment, etc.  Our payroll service refers to it as the 'general ledger' report.  Is the payroll company making your 941 and unemployment payments?  If so, they should be giving you a report that shows the amounts so you can confirm the payroll liabilities match.