How to capture payroll liabilities using 3rd party payroll provider Gusto integration with QBO. Only the expenses for payroll wages and taxes have been set up?

sasconsultingser · ‎February 04, 2020

The bank account is swiped to ensure the expenses are covered; however the liabilities must be captured to pay employee taxes for Fed, State, Social Security, Futa, Medicare etc.

MaryLandT · ‎February 05, 2020

Hello, sasconsultingser,

I'm glad to help capture your payroll liabilities in QuickBooks Online.

After setting up an expense account for payroll wage and taxes, you also need to create liability accounts to track employee taxes.

Let me guide you through on how to accomplish this:

Create a parent account to cover all your payroll liabilities

Go to the Settings ⚙ at the right top, then select Chart of Accounts.
Click New.
Select Other Current Liabilities from the Account Type drop-down list.
Select Payroll Tax Payable for the Detail Type drop-down list.
Enter the name (Payroll Liabilities) of the payable tax, then click Save and Close.

Create a sub-account for the liabilities:

Go to the Settings ⚙ at the right top, then select Chart of Accounts.
Click New.
Select Other Current Liabilities from the Account Type drop-down list.
Select Payroll Tax Payable for the Detail Type drop-down list.
Enter the name (Federal Taxes (941/944)) of the payable tax.
Mark the Is Sub-account box, then select the parent account created above.
Click Save and Close.

Once done, you can read through this article: Manually enter payroll paychecks. Then, follow Step 2: Enter the payroll paychecks into QuickBooks Online. It will tell you what accounts to debit and credit on your journal entries.

Let me know if there's anything else you need concerning payroll. I'm always around to help you out.

View solution in original post

MaryLandT · ‎February 05, 2020

Hello, sasconsultingser,

I'm glad to help capture your payroll liabilities in QuickBooks Online.

After setting up an expense account for payroll wage and taxes, you also need to create liability accounts to track employee taxes.

Let me guide you through on how to accomplish this:

Create a parent account to cover all your payroll liabilities

Go to the Settings ⚙ at the right top, then select Chart of Accounts.
Click New.
Select Other Current Liabilities from the Account Type drop-down list.
Select Payroll Tax Payable for the Detail Type drop-down list.
Enter the name (Payroll Liabilities) of the payable tax, then click Save and Close.

Create a sub-account for the liabilities:

Go to the Settings ⚙ at the right top, then select Chart of Accounts.
Click New.
Select Other Current Liabilities from the Account Type drop-down list.
Select Payroll Tax Payable for the Detail Type drop-down list.
Enter the name (Federal Taxes (941/944)) of the payable tax.
Mark the Is Sub-account box, then select the parent account created above.
Click Save and Close.

Once done, you can read through this article: Manually enter payroll paychecks. Then, follow Step 2: Enter the payroll paychecks into QuickBooks Online. It will tell you what accounts to debit and credit on your journal entries.

Let me know if there's anything else you need concerning payroll. I'm always around to help you out.

View solution in original post

slakhan · ‎May 30, 2020

Good Day, I am not seeing other current liabilities! also can you do pay slips from quickbooks?

Joesem M · ‎May 30, 2020

Thanks for posting in the Community, @slakhan.

I'd like to share some information about your queries in QuickBooks.

The steps provided by my colleague is where you can see the Other Current Liabilities account. However, if you're using QuickBooks Self-Employed, you're unable to see the Chart of accounts. This is because both subscriptions have different programs and are designed for different types of businesses.

Also, QBSE doesn't have categories for payroll, and employee and employer taxes. These features are only available in QuickBooks Online. I suggest signing up for QBO so you can set up employees, manage their payroll, print their checks and stubs, and process tax returns.

I've got you these great articles that can help you learn more about Schedule C in QBSE and how to set up payroll in QuickBooks:

If you mean something else or you have any other questions, please know that you can always get back to us and leave a comment on this thread. Take good care.

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How to capture payroll liabilities using 3rd party payroll provider Gusto integration with QBO. Only the expenses for payroll wages and taxes have been set up?