Record payroll transactions manually

pinkees · ‎April 13, 2019

In this article,Record payroll transactions manually, shouldn't the gross include the taxes?

I use a third party payroll vendor.

Where do i record (or do i even need to) "liabilities" since they are paid by my vendor?

I understand where to pay the payroll expenses, but my vendor takes out the following from my checking account - Net Pay, Payroll Taxes (that includes employer and employee)

How should my journal entry look? I do have a report that breaks down employer and employee taxes each pay period.

Anonymous · ‎April 13, 2019

If your using an external payroll service then you can choose how much information detail you want to enter in QB. This decision effects how the entries must be made.

If you just want 'payroll summary' info in QB then you will enter based on the summary report from the service. If you want to see within QB how much was paid individually then you will be entering based on the individual paystubs.

In either method I will suggest you use a 'payroll service clearing account' to process the entries thru - this can be a dummy manual bank account. The 2 bank withdrawls go into the clearing account, and then the disbursements made by the payroll service are posted, in either detail or summary form.

The 2 step withdrawl that your service does is odd, but doesn't really change anything.

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