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Level 2

Payroll Deduction - Wage Garnishment

We use ADP for our payroll service.  For each pay period, I export ADP payroll journal entry to Quickbooks Online.  One of the the entry is for wage garnishment for one of my employee.  Basically, ADP deducts the garnishment amount from employee's earning and write a check to pay the levy officer; ADP then debit our bank account for the garnishment amount.  How do I reconcile bank amount to the payroll JE?  I hope this makes sense.

 

Solved
Best answer February 12, 2020

Best Answers
Highlighted
Moderator

Payroll Deduction - Wage Garnishment

Welcome aboard to the Community, @CindyK2.

 

In QuickBooks Online, you can write a check and choose the expense account selected for your wage garnishment item. That way, the payment to the levy officer will reflect into the system and you'll be able to reconcile.

 

Here's how:

 

  1. Log into your QuickBooks account.
  2. Click the Plus sign.
  3. Select Check below Vendors.
  4. Enter necessary information.
  5. Under Category details, add the expense account.
  6. Enter the amount.
  7. Hit Save and close.

For future reference, visit the Manually enter payroll paychecks in QuickBooks Online article. It contains additional information about entering payroll paychecks manually via journal entry.

 

I want to make sure this is taken care of for you. If you have any other concerns, post a comment below. I’ll pop right back in to assist further. Have a good one.

View solution in original post

Highlighted
Moderator

Payroll Deduction - Wage Garnishment

Hello there, @CindyK2

 

Choosing the expense account for your wage garnishment item needs the assistance of your accountant. He can determine if you'll need to use the expense account that ADP uses, or there is a need to create a new one. This helps you easily track your payroll liabilities and expenses through a journal entry (JE)

 

Once verified that you'll have to create a new expense account, proceed with the steps below. 

  1. Go to the Gear (Settings) icon at the upper right. 
  2. Select Chart of Accounts.
  3. Click New.
  4. In the Account Type drop-down, select the appropriate expense account. 
  5. Choose the correct type in the Detail Type drop-down. 
  6. Enter the account name. 
  7. Click Save and Close.

 

The screenshot below shows you the last four steps. For detailed instructions, go through this article: Create An Account

CreateAnExpenseAccount.PNG

 

Once done, you can reconcile the bank amount to the payroll JE. This ensures the account in QuickBooks matches your bank statement. 

 

You can always run the Journal report to view all your payroll journal entries created within a specific date range. Just go to Reports from the left menu and enter the report name in the Search box. For more details on how to customize and print the report, check out this article: Journal Entry Report

 

I'll be right here to help if you need further assistance. Have a great day, @CindyK2

View solution in original post

6 Comments
Highlighted
Moderator

Payroll Deduction - Wage Garnishment

Welcome aboard to the Community, @CindyK2.

 

In QuickBooks Online, you can write a check and choose the expense account selected for your wage garnishment item. That way, the payment to the levy officer will reflect into the system and you'll be able to reconcile.

 

Here's how:

 

  1. Log into your QuickBooks account.
  2. Click the Plus sign.
  3. Select Check below Vendors.
  4. Enter necessary information.
  5. Under Category details, add the expense account.
  6. Enter the amount.
  7. Hit Save and close.

For future reference, visit the Manually enter payroll paychecks in QuickBooks Online article. It contains additional information about entering payroll paychecks manually via journal entry.

 

I want to make sure this is taken care of for you. If you have any other concerns, post a comment below. I’ll pop right back in to assist further. Have a good one.

View solution in original post

Highlighted
Community Champion

Payroll Deduction - Wage Garnishment

It concerns me that ADP is charging you the garnishment amount since it is a deduction from gross wages no different than child support or even 401k or even still employee FICA and FWT.

 

I have never used an outside payroll provider but it would seem to me to teach payroll run the provider would collect from your bank account an amount equal to Gross Wage plus the weekly employer share on top. Since the garnishment is part of gross I would inspect my statements to ensure that ADP is not double dipping

Highlighted
Level 2

Payroll Deduction - Wage Garnishment

 
Highlighted
Level 2

Payroll Deduction - Wage Garnishment

Since I don't actually write the check to the Levying Officer, I didn't think to do it this way.

 

For the expense account, do I use expense account that ADP uses for Wage Garnishment or do I need to create a new expense account?

 

Thanks in advance.  

Highlighted
Moderator

Payroll Deduction - Wage Garnishment

Hello there, @CindyK2

 

Choosing the expense account for your wage garnishment item needs the assistance of your accountant. He can determine if you'll need to use the expense account that ADP uses, or there is a need to create a new one. This helps you easily track your payroll liabilities and expenses through a journal entry (JE)

 

Once verified that you'll have to create a new expense account, proceed with the steps below. 

  1. Go to the Gear (Settings) icon at the upper right. 
  2. Select Chart of Accounts.
  3. Click New.
  4. In the Account Type drop-down, select the appropriate expense account. 
  5. Choose the correct type in the Detail Type drop-down. 
  6. Enter the account name. 
  7. Click Save and Close.

 

The screenshot below shows you the last four steps. For detailed instructions, go through this article: Create An Account

CreateAnExpenseAccount.PNG

 

Once done, you can reconcile the bank amount to the payroll JE. This ensures the account in QuickBooks matches your bank statement. 

 

You can always run the Journal report to view all your payroll journal entries created within a specific date range. Just go to Reports from the left menu and enter the report name in the Search box. For more details on how to customize and print the report, check out this article: Journal Entry Report

 

I'll be right here to help if you need further assistance. Have a great day, @CindyK2

View solution in original post

Highlighted
Level 1

Payroll Deduction - Wage Garnishment

I AM USING QUICKBOOKS CLOUD AND I AM TRYING TO FIGURE OUT HOW TO ENTER AN EMPLOYEES LOAN PAYBACK WHEN ADP DOES OUR PAYROLL I ENTER THE AMOUNTS IN A JOURNAL ENTRY WHICH MATCHES OUR BANK ACCOUNT STATEMENT. HOWEVER SOME EMPLOYEES HAVE 100 DEDUCTIONS EACH WEEK TO PAY BACK LOANS WE GAVE THEM AND SO HOW DO I TRACK THIS IN QUICKBOOKS AND ACCOUNT FOR IT SINCE IT ACTUALLY IS WAGES THEY WILL HAVE ON THEIR W2 AT THE END OF THE YEAR BUT SINCE DEDUCTED ITS NOT BEING ACCOUNTED FOR? ANY HELP WILL BE VERY MUCH APPRECIATED! THANKS!

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