how to add payroll entries if not using qb payroll?

Posted by kyle on September 25, 2006, 10:12 am

Please log in for more thread options

i use bank of america easypay. only real reason why is that it's free
for me and i started using it before quickbooks and everything is
setup.

anyways, on to my question: how does one go about entering a payroll
$$ for an employee without having payroll setup and actually processed
through qb? i'm assuming it's through doing a manual general ledger
entry? can you point me in the right direction.. a helpful link
maybe.. on step-by-step instructions?

thanks,

kyle

Posted by Allan Martin on September 25, 2006, 10:30 am

Please log in for more thread options

>i use bank of america easypay. only real reason why is that it's free

> for me and i started using it before quickbooks and everything is

> setup.

> anyways, on to my question: how does one go about entering a payroll

> $$ for an employee without having payroll setup and actually processed

> through qb? i'm assuming it's through doing a manual general ledger

> entry? can you point me in the right direction.. a helpful link

> maybe.. on step-by-step instructions?

This is the type of question that is best answered by your accountant.
He/she can show you how to gross up your payroll and enter it a journal
entry. How often the entry is made is up to you. For most of my clients
using outside payroll services this is done once per month.

The Allan Martin black challenge is as follows:

Payroll is processed by an outside service and payroll checks are cut using
the same operating bank account which is used for other cash disbursements.
Payroll is grossed up and recorded as a single journal entry once per month.

What is the most efficient method of performing a bank reconciliation at the
end of the month in QuickBooks?

Who is up to the challenge?

> thanks,

> kyle

Posted by N Owen on September 25, 2006, 1:35 pm

Please log in for more thread options

wrote:

>The Allan Martin black challenge is as follows:

>Payroll is processed by an outside service and payroll checks are cut using

>the same operating bank account which is used for other cash disbursements.

>Payroll is grossed up and recorded as a single journal entry once per month.

>What is the most efficient method of performing a bank reconciliation at the

>end of the month in QuickBooks?

>Who is up to the challenge?

Allan-I've found the best way to do this is one journal entry with each net
check entered on separate line to bank acct with the correct ck # in the
memo column. The rest of the JE (gross wages, tax liabilities & expense and
anything else added to or deducted from p/r checks) is done lump sum to
correct accounts. In the reconciliation screen, you can choose to show the
memo column which enables you to easily & correctly select the items that
cleared.

Do you have a better suggestion?
N Owen
To reply, please change "ONE" to numeral

Posted by Allan Martin on September 25, 2006, 2:04 pm

Please log in for more thread options

> wrote:

>>The Allan Martin black challenge is as follows:

>>Payroll is processed by an outside service and payroll checks are cut

>>using

>>the same operating bank account which is used for other cash

>>disbursements.

>>Payroll is grossed up and recorded as a single journal entry once per

>>month.

>>What is the most efficient method of performing a bank reconciliation at

>>the

>>end of the month in QuickBooks?

>>Who is up to the challenge?

> Allan-I've found the best way to do this is one journal entry with each

> net

> check entered on separate line to bank acct with the correct ck # in the

> memo column. The rest of the JE (gross wages, tax liabilities & expense

> and

> anything else added to or deducted from p/r checks) is done lump sum to

> correct accounts. In the reconciliation screen, you can choose to show the

> memo column which enables you to easily & correctly select the items that

> cleared.

> Do you have a better suggestion?

I said ping pong balls not King Kong's balls. Entering each check is the
least efficient method. I said the most efficient.

Naturally I am not talking about a payroll with only one employee, for my
challenge assume 100 employees paid weekly.

Now who is up to the challenge?

> N Owen

> To reply, please change "ONE" to numeral

Posted by Laura on September 25, 2006, 2:23 pm

Please log in for more thread options

>> wrote:

>>>The Allan Martin black challenge is as follows:

>>>

>>>Payroll is processed by an outside service and payroll checks are cut

>>>using

>>>the same operating bank account which is used for other cash

>>>disbursements.

>>>Payroll is grossed up and recorded as a single journal entry once per

>>>month.

>>>

>>>What is the most efficient method of performing a bank reconciliation at

>>>the

>>>end of the month in QuickBooks?

>>>

>>>Who is up to the challenge?

>>>

>> Allan-I've found the best way to do this is one journal entry with each

>> net

>> check entered on separate line to bank acct with the correct ck # in the

>> memo column. The rest of the JE (gross wages, tax liabilities & expense

>> and

>> anything else added to or deducted from p/r checks) is done lump sum to

>> correct accounts. In the reconciliation screen, you can choose to show

>> the

>> memo column which enables you to easily & correctly select the items that

>> cleared.

>> Do you have a better suggestion?

> I said ping pong balls not King Kong's balls. Entering each check is the

> least efficient method. I said the most efficient.

> Naturally I am not talking about a payroll with only one employee, for my

> challenge assume 100 employees paid weekly.

> Now who is up to the challenge?

For anything over 10 employees I would suggest using a payroll service that
integrates with QB. I agree that entering checks for that many people is not
efficient. At one of my clients, we had 8 employees using a payroll service
that did not integrate with their accounting software (peachtree). They did
a large JE each payroll period but there was no way of properly doing the
bank rec. We ended up creating a spreadsheet with the check numbers and the
net amount to use for the bank recs. The JE was adjusted at the end of the
month to reflect the appropriate uncleared vs cleared checks but it was a
pain in the arse.

The only other suggestion that I can think of off of the top of my head
would be to use excel to import the data into QB but I have not played
enough with importing to know if this is possible. My gut says that if this
was possible then setting up a template to enter the net amounts and check
numbers would/could/should be slighly more efficient but from experience the
individual checks really need to be entered into the system. ymmv