How to Enter Paychex or ADP Payroll in QuickBooks
Published 02/29/2012 | 
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
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:
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.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and 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
Published 02/28/2012 | 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.”
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.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.
Web Store | Price List | Free Trials | Newsletter
News Flash – QuickBooks Payroll Update: Social Security Tax Rate Extension
Published 02/27/2012 |
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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.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.
Web Store | Price List | Free Trials | Newsletter
How to Create Default Templates for Emailed Forms in QuickBooks
Published 02/26/2012 | 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.
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.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.
Web Store | Price List | Free Trials | Newsletter
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