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MrsTaxPro
Level 1

Payroll expenses

Should the payroll expense in QB be the same as the payroll detail report from the payroll company? I have a client who hired an outside company to handle his Payroll (which is totally fine with me, my firm prefers not to do payroll). I'm completing my client's taxes and need to know if the Payroll expense is deductible and if so, should it be listed in "other" expenses? OR, is this the same as the "Gross wages" from the payroll report and entered under wages on the schedule C? What I have in quick books is different from what is reported as total wages my client paid.

1 Comment
Catherine_B
QuickBooks Team

Payroll expenses

Hi there, MrsTaxPro. 

 

QuickBooks is for recording purposes and it's possible that there are expenses or payments made outside that were not recorded within QuickBooks. 

 

The Payroll Expenses account tracks payroll items that are an expense to your company. These includes salaries, wages, bonuses, commissions, company contributions such as a company-paid health plan, and the company-paid portion of taxes like Social Security and Medicare.

 

On the other hand, the Payroll Detail report shows the pay checks you've created, including the amount, taxes, and deductions, and some items in the report is not included in calculating the payroll expense. 

 

You can check out this articles that will give you more information on what is shown on our payroll reports

 

Let me know if you need anything else. Take care!

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