Is there a way to show employers tax expense 1st as a liability as a reminder? And when its paid, be applied correctly in the payroll summary version?

I think you are correct. I had a rounding issue in my excel calculations.

Thanks for the great video! Question: My payroll liabilities are calculating slightly higher than the payroll company is showing because of a misc deduction applied to the employees paycheck. What is the best way to handle that on the net check?

Thanks for answering back Seth. What I have done is to recreate the 3rd and 4th qtr paychecks with a YTD adjustment (ALT-H, A, CNTR-ALT-Y) I have assigned all of these quarterly checks to the Payroll clearing account. I have each liability listed separately. Have chosen for the all accounts to be effected. For the 3rd and 4th qtr payroll, it was done outside of QB as well as the liabilities being paid by another 3rd party company. My issue is when reconciling this and recording the liabilities I'm not sure where to make the individual checks go and if the payments for liabilities should just be a journal entry. Thanks in advance!

@nerdenterprises

3 жыл бұрын

If you are using a payroll clearing account then all of the paychecks get written from there. The payments out of your bank account for the net pay get booked against the payroll clearing account. Tax Payments are written from the checking account they come out of, and split between the employer expense and employee withholding (this should zero out the liability account).

Great video. I write one check to employment taxes and one to us treasury so how do I record those in quickbooks. My accountant does Payroll but I write these two check to pay taxes. Thanks.

How do you create a Bank Account and how do you link Excel and QB

Seth..thx for the great stuff. My question: a client used Paychex and then records all the details into quickbooks. Is it ok to switch to summary method in October. Also, ok to lump liabilities for employee-paid health insurance and all the employee-paid government stuff into one? Last question: to do a check to payroll, I just create a vender called payroll? Thx so much.

Thanks for all the helpful videos. I think you made a mistake in the payroll report (what you show around 1:21). Employer taxes plus employee taxes don't equal total taxes. They're off by a penny. That's why at 5:37 you have $530.62 for employer taxes instead of $530.63.

Hello Seth! I appreciate your videos very much! I was wondering if you can provide guidance regarding the correct way to enter an s-corp health insurance reimbursement to a 100% shareholder. We use our bank to do payroll (not QB). The reimbursement is included as a payroll item so that it will appear correctly on a W2 next year, but is not subject to FICA taxes (from what I've been reading). I'm stuck regarding how this reimbursement should be put into QB to show up correctly in reports, etc. Thanks again for your help and wonderful videos!!

@accounting-nerd

9 жыл бұрын

For an S-corp I don't think you can pay health insurance premiums as a deductible expense unless it is a company plan which means it is available to any / all employees. I would check with a tax professional on it to be sure about deductibility. Then if it is part of Payroll, add a payroll item not subject to taxes for this. If it is not deductible then don't map the payroll item to an expense account. Instead map it to a S/H Distribution account, or a Loan to Shareholder.

Thanks Gooch!

Excellent vidieo.

You have to go back to the original payment and see where it was incorrectly posted. Then it should become clear how to correct it. If it is in the liability account then the remittance of the deduction most likely was booked to an expense, overstating the expenses then. So the entry now would be Debit P/R Liab, Credit [the expense account]. This reduces the expense correcting the original overstatement.

Hello Seth, can you tell me if this was an example for entires on ONE employee or was this for a grand total of all employees. Just so that I know If have to do this for each employee's paycheck as you showed in your video. Thanks again hope that makes sense.

@nerdenterprises

3 жыл бұрын

Hi! This is the "summary" method, which means we are summarizing the payroll for all employees, so no you would not need to do this for each employee. I have another video on the "Detail" method which is what it looks like if you want to record each employee's payroll individually --> kzread.info/dash/bejne/ia2kpst_pNjPkrw.html

Hi I’m from the Philippines, I need assistance on how to: 1) Set up deductions on payroll a) shorts incurred of the employee during their shifts b) cash advances (personal use/medical assistance) 2) How to apply those deductions on payroll Hope you could make a video on those. Thanks

No but that would just be another deduction from the employees check that would be included in payroll liabilities that the employer has to send in afterwards.

i want to know how to enter opening balances after getting a backup from one quickbook version to another version eg; QB 2004 TO QB 2010

@nerdenterprises

9 жыл бұрын

If you're upgrading an existing data file then there should be no need to enter anything for beginning balances. Everything should come right in. If you are starting a new data file then you need to know what the Payroll Liabilities were as of the starting date and post that with an offset to opening balance equity.

Thanks!😃

@nerdenterprises

5 жыл бұрын

You're welcome!

Seth, I do this but how do I handle pay checks that are cut to employees For e.g. Payroll may be $2000 for checks and $3000 for payroll liabilities. Office manager cuts various checks to employees from this $2000. It's a mess.

@nerdenterprises

9 жыл бұрын

mememememe hey! Not sure I follow. If you cut a manual check, you have to calculate the correct net pay and cut it for that amount. If you cut a check (let's say) for the gross amount, then you have to catch up on the taxes on the next payroll run. What I have done in some cases is treat the manual check as an advance, then the next time payroll is run, run it for both pay periods, and deduct the employee advance from the net pay to re-coup it. Your Payroll expense will not be matched properly. That can be fixed too - if you want more direct help, sign up here www.schoolofANSWERS.com and I can help you clean things up.

Hpw to enter the details when the payroll is processed by an external provider such as ADP or PAYCHEX?

@74Systemsdotcom

10 жыл бұрын

Yes!

I just have a question about how this works for monthly recon because not all the tax payments are made in the same month that they were incurred. Our DC income is remitted monthly so the taxes withheld in January would not be remitted until until February but this method would cause the taxes to be paid after each pay period in the books

@nerdenterprises

5 жыл бұрын

Hi! If there is no payment for something, then you don't record it until that payment is made. The amount will remain in your payroll liabilities until it is paid.

I usually make quarterly entries so you can at least tie to the payroll tax returns.

@Monicamendezea

Жыл бұрын

I was doing every check and as you said it takes too long!

Where do we put the employee benefits?

@nerdenterprises

5 жыл бұрын

Depends on the benefit, and who's paying for it. Employer paid benefits are simply a payment to an expense account. If Money is taken from the employees' gross pay to cover or offset the cost, then that money is a deduction from the gross pay that goes to the corresponding expense line for where it goes when that benefit is paid for.