how to add payroll entries if not using qb payroll?
kyle
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
Allan Martin
"kyle" <cartes...@gmail.com> wrote in message
news:1159193560.9...@i3g2000cwc.googlegroups.com...
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
>
N Owen
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
Allan Martin
"N Owen" <nancy...@evONE.net> wrote in message
news:45181277...@news.ev1.net...
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?
Laura
"N Owen" <nancy...@evONE.net> wrote in message
news:45181277...@news.ev1.net...
I think there are several ways that payroll can be handled outside of using
the QB payroll service. I am assuming that one is either using a payroll
service or the taxes are being manually calculated.
Payroll service:
I use the Write check function to record the net paychecks with the correct
check number as assigned by the payroll service.
I then do a JE to record the taxes for both the employer and employee side
of the equation:
DB: Payroll Expense for the EE Tax withholdings
DB: Payroll Tax expense for the ER Tax liabilities
CR: Bank account
I do this for each payroll period so that I can see the actual check numbers
and taxes transfered to the payroll service to match how they will show up
in the bank statement.
manual calculation:
For those clients that are not using a payroll service, the paychecks (write
checks) would contain the following:
DB: Gross Payroll expense
CR: Tax payable account(s) for the EE Tax withholdings (as negative
numbers)
CR: bank account for net paycheck amount
I create the appropriate payroll Items so that w-2s can be properly created
at year-end. I use Items for Federal, Soc Sec, Medicare, FUTA, State inc
tax, State unemployment. Make sure you create items for both the ER and EE
portions where applicable.
And the JE would only contain the following:
DB: Payroll tax expense for the ER taxes
CR: Tax Payable account(s) for the ER Taxes
The actual payments (use write checks) to the government agencies would:
DB: tax payable accounts
CR: bank account
Again, all of these transactions match how they will show up on the bank
statement so that doing the bank recs for these transactions are very
straightforward.
Laura
"Allan Martin" <Al...@BadBoy.com> wrote in message
news:zSURg.4$KF...@newsfe09.lga...
For anything over 10 employees I would suggest using a payroll service that
integrates with QB. I agree that entering checks for that many people is not
efficient. At one of my clients, we had 8 employees using a payroll service
that did not integrate with their accounting software (peachtree). They did
a large JE each payroll period but there was no way of properly doing the
bank rec. We ended up creating a spreadsheet with the check numbers and the
net amount to use for the bank recs. The JE was adjusted at the end of the
month to reflect the appropriate uncleared vs cleared checks but it was a
pain in the arse.
The only other suggestion that I can think of off of the top of my head
would be to use excel to import the data into QB but I have not played
enough with importing to know if this is possible. My gut says that if this
was possible then setting up a template to enter the net amounts and check
numbers would/could/should be slighly more efficient but from experience the
individual checks really need to be entered into the system. ymmv
klunk
> challenge assume 100 employees paid weekly.
>
Can we also assume that not all paychecks will clear
the bank account during the statement period?
Allan Martin
"klunk" <sorr...@microsoft.com> wrote in message
news:pEVRg.121$gM1.84@fed1read12...
Does a bear shit in the woods? Yes, that goes without saying.
Are you up for the challenge?
>
>
Allan Martin
"Laura" <inv...@sample.invalid> wrote in message
news:XWURg.220250$5i3.1...@bgtnsc04-news.ops.worldnet.att.net...
Blab, Blab, Blab, Blab, what about my challenge?
David Smith
reconciliation date the credits to the bank on the monthly payroll entry
should consist of 2 numbers -total $ cleared and total $ o/s.
Later....
David S>
"Allan Martin" <Al...@BadBoy.com> wrote in message
news:hKRRg.6$GT...@newsfe08.lga...
klunk
> 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?
>
Your "single journal entry" has how many detail lines?
Hard to know what the most efficient method for reconciling
would be without knowing the level of detail involved.
Allan Martin
Your query is not relevant to my challenge, but I will answer since it is my
challenge.
It's a complicated payroll. Lets say 35 to 40. Naturally only one detail
line for the net payroll charge to checking for the month. The journal entry
has also been memorized from a prior month so all that needs to be done is
enter the new numbers.
>
>
>
Allan Martin
"David Smith" <em...@email.com> wrote in message
news:ef99h...@news3.newsguy.com...
> Using the service's cheque register to determine the o/s cheques at the
> reconciliation date the credits to the bank on the monthly payroll entry
> should consist of 2 numbers -total $ cleared and total $ o/s.
Very close but no cigar, some checks can remain oustanding for months. Your
method introduces needless potential complications. Keep it Simple.
HeyBub
> "David Smith" <em...@email.com> wrote in message
> news:ef99h...@news3.newsguy.com...
>> Using the service's cheque register to determine the o/s cheques at
>> the reconciliation date the credits to the bank on the monthly
>> payroll entry should consist of 2 numbers -total $ cleared and total
>> $ o/s.
>
>
> Very close but no cigar, some checks can remain oustanding for
> months. Your method introduces needless potential complications. Keep
> it Simple.
I'll second that. I pitch my paychecks in the drawer. When the drawer gets
full, I take 'em to the bank. Don't most folk operate that way (except for
the terminally anal, of course)?
David Smith
"Allan Martin" <Al...@BadBoy.com> wrote in message
>
> "David Smith" <em...@email.com> wrote in message
> news:ef99h...@news3.newsguy.com...
>> Using the service's cheque register to determine the o/s cheques at the
>> reconciliation date the credits to the bank on the monthly payroll entry
>> should consist of 2 numbers -total $ cleared and total $ o/s.
>
>
> Very close but no cigar, some checks can remain oustanding for months.
> Your method introduces needless potential complications. Keep it Simple.
>
At the end of the second month you reverse the o/s entry from the first
month and redo those items as 2 parts again -month 1 cleared during month 2
and month 1 o/s at month 2 , then do the second month entry in the same
fashion . You can't do it any simpler.
Allan Martin
Read my lips, TOO COMPLEX. KISS.
Who will get the Allan Martin Black Belt? Is there no grasshopper among
you? I would call upon our friend Tara but I'm certain she enters each
payroll check manually. Can't blame her, I would do the same if I got paid
by the hour doing it that way..
>
>
Golden California Girls
Screw your simple challenge.
Each employee's time has to be allocated to a job or overhead and they have more
than one office which has to be class tracked. Just to make it interesting, the
offices are in different states.
Feel up to it Allan?
Allan Martin
"Golden California Girls" <gldnc...@aol.com.mil> wrote in message
news:KPednac6oocOJYXY...@championbroadband.com...
Since there are tens of thousands of QB users that my challege effects
directly on a daily basis it is only fitting that we not stray from the task
at hand. Who will take the Allan Martin Black Belt challenge?
If it makes you happy the answer to your question is simple. If an outside
payroll service is used then the journal entry used to post payroll must
include job and class information.
Elaine
the "uncleared" payroll checks. Then, after reconciling, I delete this
deposit.
Elaine
"uncleared" payroll checks. After I reconcile the checking account, I
delete that deposit.
Allan Martin
"Elaine" <prat...@yahoo.com> wrote in message
news:3LaSg.7$4G...@newsfe07.lga...
> What I do is make a deposit into my checking account for the total of the
> "uncleared" payroll checks. After I reconcile the checking account, I
> delete that deposit.
Elaine, wear your black belt proudly. You have earned it. While my answer is
different and does require one less step in all fairness yours is an
excellent method and deserves reward.
What is sad is the fact that there are many out there that waste time
entering each payroll check manually into QB.
My method is to simply subtract the outstanding payroll disbursements from
the bank statement balance and enter that number in the ending balance field
of the bank reconciliation form.
>
>
Elaine
balance and the bank's ending balance agree.
Allan Martin
> Alan, your method IS better, but I have to show my accountant that my
> ending balance and the bank's ending balance agree.
I leave an audit trail written on the first page of the bank statement as
follows:
Balance per this statement
xxxxxx
Less: O/S payroll transactions (attached)
xxxxxx
Balance used for QB
xxxxxx
I am a CPA and I would give anyone my blessing if the above were used.
>
>
cat...@shaw.ca
outsources 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).
Government remittances in the US can't be really any different than
Canada. We have used a third party/outsource payroll for 15 years and
never had any problem. With the third-party software we just have to
import our payroll. But when we outsourced it we used a general
journal entry to record payroll.
1) Edit>Preferences>Payroll & Employees>Company Preferences>Select "No
Payroll".
2) The payroll summary sheets should have the information you need.
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. Most payroll sevices will only take ONE entry out of your
bank account per payroll (not one item per person) so you need only
enter one transaction. If they take individual cheques, just use
"Write Cheques" and allocate them to a Payroll Clearing Account.
3) "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. If each cheque comes out of the bank then
use a General Journal Entry instead of "Write Cheques", allocate to the
same accounts and instead of cheque amount allocate the net payroll
amount to credit the Payroll Clearing Account.
4) 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
cat...@shaw.ca
to job costing we "rigged" QB's payroll module to give us job costing
only. We set up payroll items for the amounts that effect job costing
(i.e. wages, payroll taxes, company contributions and WCB or other
taxes). We set the items up so that they only impact one account -
Payroll Clearing). Each pay period we record the employee "Timesheets"
allocating to the various jobs. We then "Pay Employees". The "rigged"
payroll gets allocated to the various jobs. Payroll Clearing should be
a NIL balance.
Cat
Allan Martin
<cat...@shaw.ca> wrote in message
news:1159569948....@i3g2000cwc.googlegroups.com...
Every company that I have ever worked with that has their payroll processed
by a service bureau also has the service deposit all tax payments
electronically and files all payroll tax returns. No separate check is
required.