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sasconsultingser
Level 3

How to set up the payroll liabilities for a payroll processed by a 3rd party? The wages and tax expenses have been set up on the COA. The bank acct is swiped for the exp.

 
2 Comments 2
FritzF
Moderator

How to set up the payroll liabilities for a payroll processed by a 3rd party? The wages and tax expenses have been set up on the COA. The bank acct is swiped for the exp.

Welcome back to the Community, @sasconsultingser.

 

You can create a journal entry (JE) in QuickBooks Online (QBO) to record the payroll liabilities from the third-party. Use the information from your payroll service as a reference.

 

Before doing so, I highly suggest consulting your accountant or accounting professional for guidance on which account receives the debit and the credit side of the transaction. This is to ensure that the books are accurate for your business.

 

Here's how to create a JE:

 

  1. In QBO, go to the + New button at the top left to get to the Journal Entry
  2. Enter the paycheck date in the Journal Date section and the number in the Journal no. field. 
  3. Enter the other necessary information, then hit Save and close.

 

For more information about the process, consider checking out this article and proceed to Step 2: Enter the payroll paychecks into QuickBooks Online section: Manually enter payroll paychecks in QuickBooks Online.

 

Please know that I'm only a post away if you have any other issues or concerns. I'll be more than willing to assist. Have a good one!

sasconsultingser
Level 3

How to set up the payroll liabilities for a payroll processed by a 3rd party? The wages and tax expenses have been set up on the COA. The bank acct is swiped for the exp.

Thanks for your input. This matter involved more steps and JEs to capture the payroll processes by a third party because the employer wanted the gross and not the net payroll to be recorded. I was able to get it done, verified and chart of accounts and clearing account established for net payroll, liabilities and gross payroll processing for payroll and taxes being swiped weekly. 

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