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I would like to know the correct entries for this paycheck. Is the snip image below correct?
Or should I separate the net pay as cost of labor-cos (salary of technician-employee) 835.76
Payroll tax: 171.49 - employee tax?
Nature of business - installation
Solved! Go to Solution.
The screenshot is correct. You can make the exact same journal entry in QB and you will be all set. Your labor cost (salary) is $1,007.25, not $835.76. Your tax expense is $314.52. The $171.49 is the employee withholding amount (1,007.25 - 835.76) that comes out of your cash but was expensed as part of the labor cost.
I appreciate you visiting the Community, @Charm25.
I'll share information about creating journal entries for paychecks in QuickBooks Online.
Payroll expenses such as wages and taxes should be entered as debit when recording paycheck entries. Also, the Cost of labor and net pay should be separated. The former should be debited, while the latter should be credited.
For your employee taxes, the amount came from the difference between your Cost of labor and net pay. It was the deduction from your employee's gross income.
Moreover, refer to this article for the proper way of creating tracking accounts and recording debits and credits: Manually enter payroll paychecks in QuickBooks Online.
Meanwhile, I recommend contacting your accountant for further guidance to keep your data accurate. If you don't have one, visit this page: Find a QuickBooks ProAdvisor.
On the other hand, consider reviewing this material whenever you want to print your journal entry: Print a journal entry report in QuickBooks Online.
Feel free to click the Reply button if you have additional questions about paycheck entries or other related concerns in QuickBooks Online. I'll be around to help.
The screenshot is correct. You can make the exact same journal entry in QB and you will be all set. Your labor cost (salary) is $1,007.25, not $835.76. Your tax expense is $314.52. The $171.49 is the employee withholding amount (1,007.25 - 835.76) that comes out of your cash but was expensed as part of the labor cost.
Thank you so much for always answering my queries..
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