Good day, Dave.
Joining you here to offer my help and guide you record the payroll transactions in QuickBooks. I can also see from your previous posts that you are using the Desktop version.
Before you make a journal entry, create separate accounts for payroll wages and taxes. Please note that you may also need to create additional accounts for taxes specific to your state or locality.
Let me share these steps with you:
- Go to the Lists menu then select Chart of Accounts.
- Click New in the Account ▼dropdown.
- Choose an account type then select Continue.
- Fill in the necessary details then click on Save & Close.
Once everything is set up and ready, follow these steps on how to record the journal entry:
- Go to the Company menu and select Make General Journal Entries.
- Fill out the fields to create your journal entry.
- Proceed to the Account column and record them using them using these entries:
For wages
- Select Payroll Expenses: Wages for the account.
- Enter the amount as a debit.
Employer payroll taxes
- Select Payroll Expenses: Taxes for the account.
- Enter the amount as a debit
Tax payments
- Select Payroll Liabilities: Federal Taxes (941/944) for the account.
- Enter the amount as a credit.
Net wages
- Select the checking account you're paying your employees from.
- Instead of combining them, enter each individual paycheck on separate lines. Enter the amounts as credits
Additional details and a sample journal entry are also provided in this article for QBO, which uses the same concept: Manually Enter Payroll Paychecks in QuickBooks Online.
However, I would still recommend reaching out to your accountant for additional advice on this matter.
Allow me to give you these articles as well for additional information when recording journal entries in QuickBooks Desktop:
The Community is always here if you need anything else.
