Wage Garnishment using third party payroll company. D isn't equal C

Hello there, VandP.

We can create a Check to balance your journal entry. Thus, I recommend reaching out to your accountant. They can determine if you'll need to use the expense account that your third-party software uses, or there's a need to create a new one.

Here's how to create a Check:

1. From the Banking menu, select Write Checks.
2. Select a BANK ACCOUNT.
3. Go to the Expenses tab.
4. Select an expense account.
5. Enter an AMOUNT and then make sure that D and C has the same amount to it balance.
6. Click Save & Close.

Once done, you can reconcile the amount to the payroll JE. You can check this guide for more information: Reconcile an account in QuickBooks Desktop.

Keep me posted if you have other concerns. Have a great day!

Thank you so much for your reply, but I have a different question. I don't need to cut a check, Payroll company does everything for us, my question is how to balance Debit & Credit. 

For instance:

On 10/01/20

D                                                 C

Gross wages Expense $1,000

Employer Taxes Expense $10

                                                  Employer Taxes Liabil    $10

                                                  Employee Taxes Liabil   $10

                                                  Checking account  $900

And then my question is where to put Garnishment and is it Liability or Expense? $10

                                                    Checking account  $10

On 10/02/20

D                                                 C

    Employer Taxes Liabil    $10

    Employee Taxes Liabil   $10

                                                  Checking account  $20

Anything else on 10/02/20 for Garnishment? I don't think so though 

Thank you!

Still waiting for the answer. Thank you!

My recommendation would be a multi step process..

1. Create an account for payroll clearing ( this is a bank account) If your entry is done correctly then this account should ALWAYS zero out.

Note: Your 3rd party payroll provider is almost always processing the garnishment ( providing garnishment service for you)

2. Allow all of the ACH transactions to come in to your payroll clearing account. 

3. Create the following Expense accounts

1. Payroll Wages

2. Payroll Tax

3. Payroll Processing fees

Your journal should be something like this: 

Debit:  wages

Debit: taxes

Debit: Payroll Processing Fees

Credit: Payroll Clearing account

this should balance, it should also zero out your payroll clearing account and create a clean process to follow.

To answer your specific question, if your payroll provider provides a garnishment service, then your garnishment expense will be counted toward the wage expense. i,e. your wages will come out and your garnishment will come out, and the two together should match your payroll journal for your payroll wage expense.