Solved

Single entry payroll expense

Forum|Forum|5 years ago
May 5, 2021
1 reply
13 views

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

A

AALORL

Let me help with your questions about payroll, AALORL.

You're correct. You don't need to follow the steps in the first response if you're running payroll inside QuickBooks. The system will automatically post the transactions in the payroll expense and liability accounts in your Payroll Account preferences.

Let me share these articles for more details and reference:

Feel free to visit us anytime you have questions or other concerns. I'll be around to assist you again. Keep safe and healthy always.

Thank you. So. How would I go about undoing this? It’s skewed the accounting for last year already. Now can I fix it this year?

Sign up

Login with SSO

Let's get you signed in

Login with SSO