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Posted by catrick on October 2, 2006, 2:24 pm
Please log in for more thread options Sorry Kyle, missed a step. The offsetting of the employer portion of
the payroll taxes goes to the payroll taxes expense account. It is
already accounted for in the credit side of the equation (i.e. payroll
taxes liability) and now you need to pick up the debit side of the
equation.
Cat
kyle wrote:
> cat,
>
> thanks so much for your time in writing such a detailed response! i
> have a question though maybe you could answer...
>
> Net $25,429.90
> Gross: $33,000.00
> EmployEE Taxes: $7,570.10
> EmployER Taxes: $3014.50
>
> The employee side makes sense.. 33000 - 7570.10 = 25429.90. I 'write
> check' and input net of 25429.90, and then in expenses tab, put gross
> 33000 into 'payroll expenses' and (neg) -7570.10 into 'payroll
> liabilities'.
>
> however this does not account for the company portion that EasyPay says
> I owe of $3,014.50 (futa=112.00, SS=2046.00, med=478.50, FL
> SUI=378.00). Would I 'write check' and then split this into a few
> checks, or since easypay is already handling where that money goes to,
> just write one check for $3,014.50 payable to the government putting it
> in liability account?
>
> thank you so much for your time!
>
>
> kyle
>
>
> catrick@shaw.ca wrote:
> > You do not need to record payroll in Quickbooks. Easypay does your
> > payroll for you and will give you a summary each payroll. At the end
> > of the year you will receive your YTD amounts for the tax slips (in
> > Canada T4's).
> >
> > 1) Reverse any entries you have made to payroll in Quickbooks.
> > 2) Edit>Preferences>Payroll & Employees>Company Preferences>Select "No
> > Payroll".
> > 3) Get all your payroll summary sheets from Easypay. They should have
> > given you a listing of: Gross payroll, CPP Employee, CPP Employer, EI
> > Employee, EI Employer, Income Tax Employee, any deductions etc. and net
> > payroll. Easypay will take ONE entry out of your bank account per
> > payroll (not one item per person) so you need only enter one
> > transaction.
> > 4) "Write Cheque" payable to Bank Statement Items. Enter the net
> > payroll amount from the summary for the cheque value. Under the
> > "Expenses" tab record Gross Wage amount to the appropriate wage
> > expense; CPP Employee+CPP Employer+EI Employee+EI Employer and Income
> > taxes go to Payroll Benefits Liability. The deductions etc. go to the
> > appropriate expense account. Do this for each payroll period.
> > 5) As you are not using the QB's payroll module you DO NOT use the
> > "Pay Payroll Liabilities". All you need to do is to "Write Cheque" to
> > the government for the amount and allocating it to Payroll Benefits
> > Liability account.
> >
> > Cat
> >
> >
> > Allan Martin wrote:
> > > > OK. Can someone let me know if this is going to be a problem with a
> > > > CPA at the end of the year...
> > > >
> > > > On the QB payroll setup, I set the "quickbooks earliest payroll start
> > > > date" to 12/31/2050.
> > > >
> > > > Every month when I process payroll, I simply go into Setup Payroll,
> > > > enter YTD amounts (bank of america easypay gives me all of the
> > > > calculated tax amounts withheld so i just input them), and I can easily
> > > > put all of my taxes in there. In the register it records it as YTD
> > > > ADJ. That is my only concern (over payroll entry). As long as I
> > > > explain this to a CPA, will there be any problem with this?
> > >
> > > You should be more concerned that you have no idea what you are doing.
> > >
> > > If your payroll is being processed by an outside service company like Bank
> > > of America Easypay you should not be using any of the payroll features in
> > > QB. What possible reason can you have for doing so?
> > >
> > >
> > > >
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