Good day,
I have a question about entering charitable donations made through payroll by the employees. ADP is processing our payroll. The amounts withheld will remain in our business bank account, and we will be issuing a check to the donation fund.
What is the proper way to record it in the QuickBooks desktop version?
Please help!
Solved! Go to Solution.
Are you making a journal entry to record payroll? If so, the amount that will be donated should be recorded as a credit to a liability account instead of the usual credit to your bank account. Set up a liability account called 'Due to XYZ Charity' or something similar. When you issue the check for the charitable donation, assign the same liability account to the check that you used on the journal entry. That will zero out the liability account.
Thanks for reaching out to QuickBooks Community, @Little Lights. I'd be glad to help you record these transactions inside QuickBooks Desktop.
To record the donation made by your employee, you can create a journal entry. To ensure you're using the correct affecting accounts, I'd suggest getting in touch with your accountant. They can provide you with the right guidance to ensure your books are accurate.
Here's how to record a journal entry:
When you're done, you can create a check to deposit in your donation fund.
You can also check out this article as a reference for creating accounts in QuickBooks: Learn about the chart of accounts in QuickBooks.
If you have other questions about recording your transactions, simply click the Reply button and add a comment below. I'll be right here to provide additional assistance. Wishing you and your business all the best!
Are you making a journal entry to record payroll? If so, the amount that will be donated should be recorded as a credit to a liability account instead of the usual credit to your bank account. Set up a liability account called 'Due to XYZ Charity' or something similar. When you issue the check for the charitable donation, assign the same liability account to the check that you used on the journal entry. That will zero out the liability account.
Yes, I do record payroll using journal entries. Thank you so much for your help!
thank you~
Hi, Rainflurry.
I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.
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