In this article we will learn how to record payroll in QuickBooks. Talk about Accounting and don’t mention QuickBooks, it is like tea without sugar. In this article we will discuss on how to record payroll in QuickBook. Sometimes QuickBooks Payroll can be very complicated business for those who have less or no idea about it, but not for those who are used to and bookkeeping was not easy task for small and medium sized company, so these companies turned into a payroll service that is combined with QuickBooks.
Reason behind it, they have not much knowledge about accounting service like how to record payroll in QuickBooks and all, so they switch in QuickBooks Payroll Services. That makes strong point to using payroll services but it has a hidden truth that you cannot edit paychecks and this is normal problem which you face during it.
If you ask to an expert about it then they will reply you positive regarding paycheck edit topic and we are facing customers who have that queries a number of time.
These things are very easy when you are QuickBooks user, because in QuickBooks Payroll it is very easy to change in entries, you have there and these things are very easy when you are QuickBooks user, when you are personally entering payroll in QuickBooks, it is a lot simpler to control the sections to accomplish the correct result and introduction on the financial summaries in light of the fact that the passages resemble whatever other check, which can be altered.
Learn How to Record Payroll in QuickBooks
There are three method for do manual payroll entries in QuickBooks. All things is depend on how much data you want to keep there it means how much details you have for payroll section and also which type of reporting you want to see there.
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Scenario #1: – In this method Paycheck is getting all amount from your account including taxes too and Paycheck also responsible for paying all payroll liabilities and
- Please, select Create (+) icon given there
- In other section, select Journal Entries
- Here, you need to add paycheck date and entry number which you have
- There you need to add the Debit and Credit accounts
Note- Every accounts used in this model are expenditure accounts, excluding bank (Checking) account
- Choose Make Recurring option given there
- Enter Template name, then you need to setup Template type to Unscheduled
- Now time to save template (Save option is given there)
- After doing all, Click on save option to save journal entry
Important Point to remember
- If you are doing this transaction once then you should not apply step 4 and 6, skip it.
- If you want access the template you created for this transaction then you need to follow Gear icon <Under Lists < choose Recurring Transactions.
Scenario #2: – Customers use this method when the company is responsible for paying the payroll liabilities.
- You need to find Create icon (+)
- Go to Other, Select Journal Entry option there
- There is option for Paycheck date and Number, feed it
- You should add credit and debit card there
- Now, time to save the entry, so click on save option
Important Point to Remember for How to record Payroll in QuickBooks
- As a customers, you need to use the liability account, which has used in this journal entry while you are ready to generate a check to pay the taxes. It can be zero out the liability or lower it to the current outstanding amount.
- As we know that the employer is “middleman” whose only accountability is to deduct and give the money to the government therefor, the money should not be an expenditure to the employer.
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Scenario #3 for learn how to record payroll in QuickBooks
If organization is running their payroll through Paycheck and today, they needs to deliver a last check for their leaving worker.
It is true that, issuing the last check of a leaving representative is the most widely recognized model when a company still needs to issue a check, is running their payroll through an outsider. Time to contact your payroll service provider company and provide them the data like- retention sums and the check number used for the check. For any help and contact QuickBooks Payroll Support and our service team will be there to assist you.
- Time to go the Create (+) icon at the top of the table
- Go to Vendors, then pick Check option given there.
- Feed all required data there
- (Non-compulsory) Put something expressive such as “Final Paycheck.” In memo section. But remember this will same show on reports for the bank account.
- Save and close.
A journal entry is expected to get out the risk record utilized on the check after finished with the check. This section will expenditure the gross wages and the business’ bit of the payroll charges. It is dealing with the employee and employer of the taxes and also makes clear the liability account back to zero. So, now you have learn how to enter payroll in QuickBooks. Now, we have mention some important points below, which need to understand by user carefully.
- As we have mentioned above steps choose create (+) icon which is on top portion
- Go to other then pick Journal Entry again
- Make sure your date and paycheck date will be same
- In Journal number section, time to add paycheck number
- And add your credit and debit card
- Now, you should save this journal entry by clicking on Save option given there
What Next After Know How to Record Payroll in QuickBooks?
Normally, it is the uncommon case that you would make payment of your taxes directly, the very same system follow with some slight adjustments to your last journal entry. You would just charge the business ledger you have for following pay by the net pay rather than gross and credit the liability account by a similar balance.
You have seen that the taxes would be zero after created paycheck which has paid to federal and state agencies and should know that after checks have written they need to be listed in payroll liability account. This can be zero out the account or maintain the amount to the current balance of payroll taxes still due.
So, if you are getting any kind of issues or want to learn how to record payroll in QuickBooks and so many QuickBooks related topics then you need contact team at their given toll-free QuickBooks Payroll Support Phone Number and keep enjoying accounting services till then take care Bye.
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