how to add payroll entries if not using qb payroll?

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.

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.

You do not need to record payroll in Quickbooks. Easypay and other 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

Allan Mart> > Alan, your method IS better, but I have to show my accountant that my

Outsourced payroll services should be able to supply classes etc. As 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

snipped-for-privacy@shaw.ca wrote:

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.