Accounting & Bookkeeping & Small Business Forum

[Guest]

I use a service for payroll, but how do I enter each employee's wages so it can be deducted from banking account? Would I also enter the payment I give to the service for doing the payroll as any other vendor?
Regards,
Barbra

[Guest]

Barbra,

I use Paycycle for my clients and it works really good for me. It's very easy to use. You may want to check it out. here is the website. www.paycycle.com


Good luck.

[Guest]

Hi Barbara,

I have used both Intuit and ADP and both essentially make electronic transfers from the employer accounts the same way:

Usually there are three electonic transfers to pay for the payroll:

1. A transfer consisting of the net pay of each employee paid that pay period. Accounting: prepare a cash disbursement (e.g., a check or check register entry if using Quickbooks) for the entire amount of the deduction. Assuming a simple straight forward deduction, charge the GROSS amount of each employee's wages to the Salary Expense account. Charge the difference, which will be a credit, to Payroll Liabilities.

2. A transfer consisting of the taxes withheld from the employee's paychecks and the employer's payroll taxes. Accounting: prepare a cash disbursement (e.g., a check or check register entry if using Quickbooks) for the entire amount of the deduction. Charge the employer's taxes to the appropriate expense account and charge the employee's withheld taxes to Payroll Liabilities. This will zero out Payroll Liabilities.

3. A transfer for the fee to the payroll processing service: Accounting: prepare a cash disbursement (e.g., a check or check register entry if using Quickbooks) for the amount and charge the expense account, Payroll Processing Fee or similar.

Hope that helps.