How to pay bonus to accounts payable

Hi,

I have a question to QuickBooks proos. I have 2002 basis version, not sure if it would be much different now. When I close my company fiscal year, I want to have in accounts payable bonus that I will pay during next companies fiscal year. So at the end of

2004 I had 5000$ in accounts payable that was marked as emloyee bonus. As per rules, I believe I have 180 days to pay this bonus to employee. Now when bonus is paid, I usually pay lets say 4000$ to employee and 1000$ to source deduction. Actually it is 1000$ + CPP on emplyers portion, but I believe I can ignore employers CPP for that accounts payable. How do I tell account payable that some money went to employee and some to source deduction? When I choose to pay bill from accounts payable I just can choose account that will be used to deduct money for bill and vendor. Somehow I want to be able at the end of the year to calculate how much in total I paid for source deduction. How these things are done.

Thank you very much for help

Reply to
IHateSpam3521
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Year end payroll accruals are usually made by a journal entry to a current liability such as accrued salaries, and then reversed by a journal entry when actually paid. You would normally not use accounts payable for accruals and is not recommended. You should also disregard any CPP either for the employee and the employer when making the entry..

By the way I am assuming that your company is on the accrual basis.

Reply to
Allan Martin

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