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Single entry payroll expense

Forum|Forum|5 years ago
May 5, 2021
1 reply
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Hello, I need to recognize the payroll expense as a single entry, lets say $500 weekly (we don't use QB payroll). The tax deductions are entered as a total expense as taxes, not in a particular employee. So I enter the employee name as a "vendor" and categorized as Payroll Expense Account. Not sure why, maybe it's due to rules, some transactions are being entered as deposit and other as expense, so the result is a wrong P&L.

How should I enter these?, see print screen for better understanding.

Thanks,

QuickBooks Online

Best answer by MaryLandT

I can guide you through how to record those payroll expenses in QuickBooks Online (QBO), websoftpr.

You need to create a journal entry when entering payroll expenses you've processed outside of QBO. You'll want to start over by deleting those deposits and expenses.

To ensure that those transactions are categorized correctly, you need to create these accounts on your Chart of Accounts:

Expense accounts:

Payroll Expenses: Wages
Payroll Expenses: Taxes

Liability accounts:

Payroll Liabilities: Federal Taxes (941/944)
Payroll Liabilities: Federal Unemployment (940)
Payroll Liabilities: [State] SUI/ETT
Payroll Liabilities: [State] PIT/SDI

Please check out this article to learn what accounts to debit and credit: Manually enter payroll paychecks in QuickBooks Online. It provides instructions and detailed steps.

Once all transactions are recorded in QuickBooks, you can start reconciling your bank accounts.

Let me know if there are other things you need with recording payroll expenses. I'm always right here to guide you through the process.

MaryLandTAnswer

Level 10

I can guide you through how to record those payroll expenses in QuickBooks Online (QBO), websoftpr.

You need to create a journal entry when entering payroll expenses you've processed outside of QBO. You'll want to start over by deleting those deposits and expenses.

To ensure that those transactions are categorized correctly, you need to create these accounts on your Chart of Accounts:

Expense accounts:

Payroll Expenses: Wages
Payroll Expenses: Taxes

Liability accounts:

Payroll Liabilities: Federal Taxes (941/944)
Payroll Liabilities: Federal Unemployment (940)
Payroll Liabilities: [State] SUI/ETT
Payroll Liabilities: [State] PIT/SDI

Please check out this article to learn what accounts to debit and credit: Manually enter payroll paychecks in QuickBooks Online. It provides instructions and detailed steps.

Once all transactions are recorded in QuickBooks, you can start reconciling your bank accounts.

Let me know if there are other things you need with recording payroll expenses. I'm always right here to guide you through the process.

A

AALORL

If we use Quickbooks to process all the payroll and taxes, we do not need to do these things, correct? As in, no need to enter a paycheck under "Expenses" if QB did all the work- its done by QB and all we have to do is run the payroll. Former in house bookkeeper was entering paychecks and the taxes paid as expenses and I cannot figure out why

G

Goodjam99

Hi there, @AALORL.

Thanks for bringing this up in the QuickBooks Community.

If you haven't created any paychecks yet, you can set up a prior payroll to record your employee's past pay information. This is to ensure the year-to-date (YTD) totals are accurate on your employees’ pay stubs.

First, gather employee W-4s, pay stubs, or other payroll reports to help you enter employee's details and what each employee has been paid so far this year. You can check the list of payroll reports you can use to enter prior payroll here: Prior Reports For QuickBooks Online (QBO) Payroll.

Once done, follow these steps to get started:

Select Payroll then Overview.
You will see tasks you need to complete on your TO DO. When you're done adding your business info, it's time to tell us about your team. Select Let's go to start adding your employees.
Enter your employees' info. After you complete the questions, select Done. Select Add an employee to add the rest of your employees.
Complete the onscreen steps. If your employee doesn't have any wages to enter this year, select Done and add additional employees as needed.

Then, complete the rest of the steps by following this article: Set up a prior payroll for QBO.

If you already created paychecks, you can enter them as a regular payroll. Just use your payroll expense data as your basis and reach out to your accountant for further guidance.

After recording or entering your payroll data, delete your old payroll expenses to correct your records.

Additionally, you can run some payroll reports in QuickBooks. This way, you can get a closer look at your business's finances and view useful information about your business and employees.

You're more than welcome to visit this thread again if you have other questions. Just add the details of your concern here and I'll help you out.

Hello,

Our system seems to be creating payroll entries and an expense entry & we cant figure out why -

03/24/2023

Expense

$3,374.33

05/12/2023, 03:17 PM

03/24/2023

Payroll Check

DD

$3,374.33

03/23/2023, 03:29 PM

I'm thinking that the expense entry should be deleted because its doubling the company expense number. I have an entry in the wage expense & the professional service account.

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