I have a client that uses ADP for their payroll. ADP withdrawals the total amount for each payroll's taxes as one withdrawal. This amount includes payroll liability and company payroll tax expense. For example, their bank register looks like this:
ADP Payroll - $xxxx.xx (net payroll amount deducted from bank account)
ADP Payroll Taxes - $xxxx.xx (includes all tax liability and expense from payroll)
How do I enter this withdrawal for the payroll taxes?
The client doesn't pay any of their payroll taxes. ADP pays all of them out of the money they pull for each pay period. It shouldn't be a payroll expense, because a large amount is actually a payroll liability.
They also have health insurance, Simple IRA's, and Child Support withheld from some of the paychecks that the company does pay. This amount is NOT included in the payroll tax deduction.
Thank you!
