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VandP
Level 1

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

Hi friends. I got stuck with Wages Garnishment journal entries. 

How can I balance journal entries with wages garnishment? Something is missing and I can't get what.  We use Paychex for our payroll processing.

Thanks!

3 Comments 3
Adrian_A
Moderator

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!

VandP
Level 1

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

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!

VandP
Level 1

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

Still waiting for the answer. Thank you!

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