Hello -
I have a client who uses a 3rd party payroll company. The 3rd party payroll company pays the garnishment directly (not my client) - I am having an issue reporting this garnishment.
For example. I create a JE -
Gross goes to labor COGS
EE taxes get credited to a liability account
Any other deductions (health etc) get credited as well
After each employee is entered - there is one debit from the payroll company who issues checks to the employee and then are cashed from the payroll companies checking account.
The problem I am having is that the garnishment gets posted to a liability account (the JE equals) but I can not zero the liability account out because the lump sum that the payroll company takes includes the garnishment. There is no separate payment to pay the garnishment. Please help!
