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m-veitchx2-gmail
Level 2

Recording Payroll payments

I'm new to QuickBooks, and I'm setting it up for a small Corporation that will have the sole shareholder as an employee so he can withdraw a salary with the deductions for income tax and CPP. 

I plan on handling the payroll manually using journal entries, but my question is how do I record the "pay cheque" when it will be a direct deposit to the employee?  Do I use the cheque form and just not print it or is there another way to record it?

Solved
Best answer December 03, 2020

Best Answers
Charies_M
Moderator

Recording Payroll payments

Good day, m-veitchx2-gmail.

 

It's my pleasure to help you record manual payroll in QuickBooks Online (QBO). Before recording a manual paycheck, you'll want to create manual tracking accounts to track your payroll liabilities and expense. Then, you can enter the paychecks as a Journal Entry.

 

Here's how:

  1. Get your employees' payroll pay stubs or a payroll report from your payroll service.
  2. Select + New.
  3. Select Journal Entry.
  4. Under the Journal date, enter the paycheck date.
  5. If you want to track the paycheck number, enter it in the Journal no. field.

For a complete guide on how to manually enter payroll paychecks in QBO, here's an article that you can refer to: Manually enter payroll paychecks in QuickBooks Online.

 

Then, you can write a manual check for an employee. Make sure you know the Net amount and the taxes to be withheld to manually calculate the gross wages.

 

Here's an article to learn more about calculating gross wages in QuickBooks Online: Calculate gross wages.

 

To write a check:

  1. Go to the +New icon.
  2. Under Vendors section, select Check
  3. Under Payee, select the employee you want to pay on Friday.
  4. Enter the necessary information.
  5. Click Save and close.

You'll also want to run a report for Check Detail if you wish to review the check you created. Here’s how to run the report:

 

  1. Click Reports on the left navigation pane.
  2. In the Go to report search field, type in Check Detail.
    4.PNG
  3. Select the Customize button at the upper right corner.
  4. Choose the Filter section, select Check Printed. Then, click the dropdown arrow and click the Printed option.
  5. Click Run report.

Since you're new to QBO, we have easy-to-access articles, webinars, and video tutorials that will help you in familiarizing the different tasks, features, and functions of QBO. Below are the following:

 

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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2 Comments 2
Charies_M
Moderator

Recording Payroll payments

Good day, m-veitchx2-gmail.

 

It's my pleasure to help you record manual payroll in QuickBooks Online (QBO). Before recording a manual paycheck, you'll want to create manual tracking accounts to track your payroll liabilities and expense. Then, you can enter the paychecks as a Journal Entry.

 

Here's how:

  1. Get your employees' payroll pay stubs or a payroll report from your payroll service.
  2. Select + New.
  3. Select Journal Entry.
  4. Under the Journal date, enter the paycheck date.
  5. If you want to track the paycheck number, enter it in the Journal no. field.

For a complete guide on how to manually enter payroll paychecks in QBO, here's an article that you can refer to: Manually enter payroll paychecks in QuickBooks Online.

 

Then, you can write a manual check for an employee. Make sure you know the Net amount and the taxes to be withheld to manually calculate the gross wages.

 

Here's an article to learn more about calculating gross wages in QuickBooks Online: Calculate gross wages.

 

To write a check:

  1. Go to the +New icon.
  2. Under Vendors section, select Check
  3. Under Payee, select the employee you want to pay on Friday.
  4. Enter the necessary information.
  5. Click Save and close.

You'll also want to run a report for Check Detail if you wish to review the check you created. Here’s how to run the report:

 

  1. Click Reports on the left navigation pane.
  2. In the Go to report search field, type in Check Detail.
    4.PNG
  3. Select the Customize button at the upper right corner.
  4. Choose the Filter section, select Check Printed. Then, click the dropdown arrow and click the Printed option.
  5. Click Run report.

Since you're new to QBO, we have easy-to-access articles, webinars, and video tutorials that will help you in familiarizing the different tasks, features, and functions of QBO. Below are the following:

 

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

m-veitchx2-gmail
Level 2

Recording Payroll payments

Thank you so much giving me such great detailed instructions.  I really need and appreciate all the help.

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