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Monthly Archives: February 2012

How to Enter Paychex or ADP Payroll in QuickBooks

We are an S corp. We paid $ 168000 in wages. Our employer paid liability (SS + Medicare) is 9344.60. We paid the net pay of $117441.26 to employee, and 50558.74 was employees deduction.

Should our gross payroll expense include our employee’s deductions? Or should we consider the net pay to employee as our payroll expense? The employee’s withholding was paid directly by paychex. Is that part of our payroll expense too? What would be the journal entry in QuickBooks?
Thank you

Your payroll expense is gross payroll ($168000). The employee withholding ($50558.74) should be booked to a payroll tax liability account.

You really should enter each payroll individually, otherwise reconciling your bank account is going to be a nightmare. In this case, I recommend entering a check for each debit from your bank account. You’d enter the gross payroll as a positive number and employee withholding as a negative number. The net check would be what was actually debited from your account.

When you pay your payroll taxes ($59903.30) you’d enter two accounts – $50558.74 for payroll tax liabilities and $9344.60 for payroll tax expense.

But if you want to enter a journal entry for the entire year, it should look like this:

Debit – payroll expense ($168000)
Debit – payroll taxes ($9344.60)
Credit – bank account ($177344.60) – $117441.26 net pay + $59903.34 payroll taxes

I recommend switching to QuickBooks Assisted Payroll. It’s integrated with QuickBooks so you don’t need to enter journal entries. It’s also less expensive than Paychex.

Here are the standard fees. We can get you 20% off your monthly service fees for the first year:

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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

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News Flash – IRS Won’t Require Reconciling 1099-K Reports on Credit Card Payments with Gross Receipts

It looks like the IRS is dropping the requirement to reconcile 1099-K. The IRS recently sent a letter to Susan Eckerly, senior vice president of public policy at the National Federation of Independent Business, IRS deputy commissioner for services and enforcement Steven T. Miller, wrote:

“Thank you for your January 18, 2012, letter concerning proposals that Forms 1120 and other business income tax forms require a reconciliation of gross receipts and merchant card transactions,” he wrote. “As you know, we announced in October that no reconciliation is required on the 2011 income tax returns. In your letter, you raised whether we would require reconciliation for future years and outlined potential business impacts if we pursued such reconciliation.

“This is to confirm what I stated in our recent meeting with your organization and other industry representatives,” Miller added. “There will be no reconciliation required on the 2012 form, nor do we intend to require reconciliation in future years. Our intention is that the reporting of gross receipts and sales on the 2012 income tax forms will be modeled on the 2010 income tax forms. No other changes to these forms related to payment card reporting are contemplated.”


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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

Visit our webstore for great deals on QuickBooks and QuickBooks POS!

News Flash – QuickBooks Payroll Update: Social Security Tax Rate Extension

 

 

Intuit QuickBooks Payroll 
Payroll Update: Revised Tax TablesIntuit has released Payroll Update 21206, which includes revised tax tables to reflect the extension of the Social Security tax rate for employees.

How do I get the Payroll Update?
It’s important that you receive everything in the Payroll Update to make sure that you are in compliance with legislation that affects your payroll. Just follow these three simple steps:

  1. Check to see if you have Automatic Updates turned on.
    Choose Help > Update QuickBooks.
    – On the Options tab, you will see either Yes or No selected for Automatic Update.
  2. If Yes is selected, verify that you received Payroll Update 21206 from within QuickBooks. Go to Employees > Get Payroll Updates. You should see a message that says, “You are using tax table version 21206.” 

    If you do not have version 21206, you need to download the update manually. Click here for instructions.

  3. If No is selected for Automatic Update, you need to download the update manually. Click here for instructions.

Disk delivery customers: The next disk delivery is scheduled for late March 2012 and will include these updates. If you have an internet connection, we strongly recommend that you download the update now. Simply follow these instructions to install the update.

 

Social Security Tax Rate for Employees
The Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630) that was signed into law by President Obama on February 22, 2012, extends the 4.2% Social Security tax rate for employees through December 31, 2012.Intuit QuickBooks Payroll is supporting this change in Payroll Update 21206. For more information, click here.

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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

Visit our webstore for great deals on QuickBooks and QuickBooks POS!

How to Create Default Templates for Emailed Forms in QuickBooks

Not sure if you can help with this one. When sending something let’s just say a sales order or invoice from QuickBooks using outlook, is there a way to use and or designate a saved outlook form to be used in these mailings?

Unfortunately, no. That’s why I use the QuickBooks Email option instead.

You can set both in Edit > Preferences > Send Forms. The QuickBooks Email option is on the My Preferences tab. The default templates for emailing forms is on the Company Preferences tab.

Make sure to bcc yourself on the default templates so you’ll know the forms were successfully sent.


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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

Visit our webstore for great deals on QuickBooks and QuickBooks POS!