When to start accrual date in QuickBooks?

6kPaula · ‎February 23, 2021

When recording payroll accrual date in QuickBooks should it be the date I processed payroll or the date it was paid to employees? For example, I completed processing payroll on January 6th and sent it to the bank to be paid which takes 2 days. Employees were paid on January 8th. So when documenting this is QuickBooks which date should I use?

Thanks

john-pero · ‎February 23, 2021

If you are using QB Payroll it correctly posts payroll as of the paycheck (or DD) date. Despite it being "cash" as reported by @DivinaMercy_N the employer tax liabilities are posted as of the same payroll date per accrual not cash rules. All charges related to a payroll run are as of the same date unless you print paychecks on different dates.

View solution in original post

DivinaMercy_N · ‎February 23, 2021

You've come to the right place, @6kPaula.

I appreciate you for providing the details of your concern. Let me share some info about how you can record your payroll accrual date. In QuickBooks, payroll is on a cash basis so you will need to record it on the date your employee got paid.

For your reference, please see this article: Get started with Payroll.

Also, QuickBooks makes it easy to display your payroll and employee information. To get started, you can generate multiple payroll reports in excel.

If you need further assistance in processing payroll in QuickBooks, please leave a response below. I'll be always around to help. Have a good one.

john-pero · ‎February 23, 2021

If you are using QB Payroll it correctly posts payroll as of the paycheck (or DD) date. Despite it being "cash" as reported by @DivinaMercy_N the employer tax liabilities are posted as of the same payroll date per accrual not cash rules. All charges related to a payroll run are as of the same date unless you print paychecks on different dates.

6kPaula · ‎February 24, 2021

One more question: If the money is taken out of our bank account on Wednesday but staff are not paid until Friday, should the payroll accrual date be Wednesday or Friday?? Thanks.

Just want to make sure: So do we use the date that we complete payroll or the date that our bank processes the direct deposit request which is usually two days later. For example, we send paycheck amounts to Chase Bank on Wednesdays and our staff are paid on Fridays. Should we use the Wednesday date or the Friday date?

Thanks, Paula

RCV · ‎February 24, 2021

Thanks for coming back. Let me explain to you when do you need to submit payroll, 6kPaula.

We'll need to use Friday as the paycheck date of the direct deposit transaction. Then, send it before 5:00 PM PST two business days (Wednesday) prior to payday. After you’ve submitted payroll, you can still void or add paychecks up to 4:59 PM PST that day. After 5:00 PM, payroll begins processing and cannot be stopped.

Then, let's make sure we have enough funds in your account to cover the payroll on the day it’s submitted. Also, Intuit won’t process your payroll on weekends or on state or federal holidays. To learn more about this one, check out these articles:

Feel free to visit our Process payroll page for more insights about running and managing payroll in QuickBooks.

You can always update us after sending your direct deposit in the comment below. I'd like to ensure this is resolved for you. You have a good one.

Topics

Training

Community

Resources

When to start accrual date in QuickBooks?