We use a bank to process our payrolls. I have just been thrown into
the bookkeepers position and do not know how to get that payroll info
into peachtree. Its been forever since Ive done journal entries !! I
usually do product receiving and costing. Any help is appreciated.
This sort of depends on what all is happening with your payroll, and to what
extent the payroll service is handing things.
In a pure situation, you have the gross wages you pay, plus your FICA match,
FUTA, state unemployment and probably the processing fees the payroll
service charges you. Since the payroll service is handling payroll tax
deposits, you won't have to worry about tracking any payroll liabilities -
your journal entries will only be hitting expense accounts. Employee-paid
taxes you don't have to worry about - gross wages just debited against your
wages expense account (and/or Salaries expense account depending on your
chart of accounts). Company-paid taxes will be debited to your Payroll Tax
Expense account, and the payroll service's processing fees will be debited
to an expense account of your choice (e.g. Legal & Professional Services).
Let's say you have $1,000 gross payroll per pay period. On top of that
you've got another $150 for your FICA match, FUTA, and SUI. And the payroll
service charges you $50 to process. Your journal entry would look something
Account Debit Credit
10200 - Checking 1200.00
77500 - Wages Expense 1000.00
72000 - Payroll Tax Expense 150.00
68500 - Legal & Professional 50.00
Naturally, if your company has an accountant they work with, it would be
good to confer with them to make sure you're hitting the accounts they want
. . .
The easiest thing to do is to a 2 step process:
a) record all net paychecks using Write Checks. Use the actual check number
assigned by the payroll company so that you can do the bank recs easily.
Post the check to your Gross Payroll expense account.
b) record the taxes using a journal entry that Debit Gross Payroll expense
for the employEE withholdings, Debit Payroll tax expense for the employER
paid FICA/SS, FUTA, SUTA, etc and credits Cash for the total.