Question

Recording outsourced payroll

Forum|Forum|6 years ago
August 1, 2019
2 replies
21 views

We recently partnered with a co-employer to handle our payroll. Not sure how to record payroll in our books now. They take out funds for holiday and vacation account. Employees can get the money from the co-employer at the holidays. How should this be recorded? Just as gross payroll? Thank you,

RenjolynC

Level 9

We want to make sure your books are accurate, jatbookkeeper.

Creating journal entries are a good way to record the accounting information for your payroll.

I've got an article that has different scenarios and steps here: Record payroll transactions manually.

I'd also suggest consulting your accountant for the accounts affected.

If you need more help, you can always leave a reply on this thread. I'll be around to help you some more. Have a great day!

J

jatbookkeeperAuthor

Thank you! My problem is the co-employer sends us an invoice that shows this:

gross payroll: 17,782.14

benefits: 208.69 (employer health ins contribution)

FICA ss: 1,000.69

FICA med: 234.04

FUTA $96.83

SUTA 476.14

Workers Comp: 36.45

Admin Fee: 246.40

Employee Deduct Credit: (708.62) This is for our 401K and Aflac that we pay directly not thru PEO.

Total that came out of bank: $19,372.76

My question is, how do I record the amounts that come out of the employees payroll for health/vision/dental that come out of their checks that the PEO pays on our behalf? They deduct $2395.76 for ins out of the employees payroll. My journal entry keeps coming out unbalanced and I am not sure how to record.

Thank you!

C

Catherine_B

Level 9

Hello there, jatbookkeeper.

It's possible that there are lacking information when recording your Journal Entries (JE). That's why they're unbalanced. Let's make sure to enter them all.

When you record the expenses (money out), enter them on the Debit side. You Credit the bank and the liability account used for tracking payroll liabilities. Also, the Debit side must be equal with the Credit side for you to Save your JE.

Manually recording the payroll expenses will affect your books. You can check out this article that will give you more information on how to set up payroll manually.

You also want to review the JE you've recorded through Journal Reports. Just click Reports from the menu and select Accountant & Taxes. After, click Journal and customize the report.

Let me know if you have other questions. I'll be around to help!

C

ChristieAnn 11

Level 9

Hi there, jatbookkeeper.

Thank you for posting here in the QuickBooks Community.

You'll need to write a check to record the payment to the PEO. Enter $208.69 for the Employer Insurance expense and $2395.76 for the Employee Insurance.

To account for the employee's health deduction against the prepaid account, create a JE. Debit the payroll expense and credit the employee insurance.

I'll provide you a screenshot as an example.

I'll suggest contacting an accountant to assist you further with the best action for your business.

You can check this article get started by setting up your employees and running your payroll: Get started with payroll.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

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