I just took over for our book keeper. We have a payroll bank account. At month's end, it should zero out, unless I'm looking at this wrong. I transfer gross amount of check into payroll account. Then print out checks for employee for net amount. The taxes/insurance remain in payroll account. Once a month I go online and pay the taxes/insurance which deducts from this account. I try to do this on the first, or even last day of month. When I run "custom summary report" it shows a negative net gain for the exact amount that I paid for taxes and insurance. Payroll deductions are set up as liabilities. When I pay the taxes online, I then create an entry in the register for the paid amount. Am I doing this right? The report just seems to mess up. Thanks.
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