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6kPaula
Level 2

Payroll accrual start date?

When recording payroll accrual dates, should it be the date I completed and sent each employees payroll amount to my bank to be paid via direct deposit OR should the date be when the employees are actually paid? For example, I completed processing payroll on a Wednesday and sent it to the bank to be paid but the employees received payment on Friday. Should the payroll accrual date be Wednesday or Friday??

Thanks, Paula

 

Solved
Best answer February 28, 2021

Best Answers
Ryan_M
QuickBooks Team

Payroll accrual start date?

Hi @6kPaula,

 

I've checked and found out that you posted the same question a few days ago. In case you missed it, click on this link.

 

To answer your question, the accrual start date for your given situation is Friday.  The date on the paycheck or the direct deposit is the accrual start date. 

 

Take a look at this article: Set up and track time off in payroll. It includes the steps on how you can change your time off policy in QuickBooks Desktop (QBDT). 

 

I'll be around in case you need further assistance with your QBDT payroll. Tag me in the comments below, and I'll handle it for you. 

View solution in original post

Adrian_A
Moderator

Payroll accrual start date?

I'm here to share some information when paying employees, Paula.

 

As per IRS regulation, the basis of the tax information is the paycheck date. They only tracks when employees are paid, not the span of time when the money is earned.

 

Based on your example, since you pay your employees on Fridays, you'll report a tax liability on Fridays.

 

I've added this reference that has the detailed information when processing payroll: Payroll 101.

 

I'll be around if there's anything that I can help. Keep safe!

View solution in original post

4 Comments
Ryan_M
QuickBooks Team

Payroll accrual start date?

Hi @6kPaula,

 

I've checked and found out that you posted the same question a few days ago. In case you missed it, click on this link.

 

To answer your question, the accrual start date for your given situation is Friday.  The date on the paycheck or the direct deposit is the accrual start date. 

 

Take a look at this article: Set up and track time off in payroll. It includes the steps on how you can change your time off policy in QuickBooks Desktop (QBDT). 

 

I'll be around in case you need further assistance with your QBDT payroll. Tag me in the comments below, and I'll handle it for you. 

View solution in original post

6kPaula
Level 2

Payroll accrual start date?

Thank you Ryan for your response. Would there be any reason to log payroll on the day the  request for direct deposit is made instead of the employee pay date? The previous director insisted that "for accrual purposes" it was to be put in QuickBooks on the day it was sent to the bank (Wednesday) and not the date the employees received it (Friday). This seemed counterintuitive and incorrect to me, thus my reason for posting my question here. 

Thanks, Paula

Adrian_A
Moderator

Payroll accrual start date?

I'm here to share some information when paying employees, Paula.

 

As per IRS regulation, the basis of the tax information is the paycheck date. They only tracks when employees are paid, not the span of time when the money is earned.

 

Based on your example, since you pay your employees on Fridays, you'll report a tax liability on Fridays.

 

I've added this reference that has the detailed information when processing payroll: Payroll 101.

 

I'll be around if there's anything that I can help. Keep safe!

View solution in original post

6kPaula
Level 2

Payroll accrual start date?

Thanks for the info!

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