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PAYROLL LIABILITIES AND DEFINITION


I need a little help. I noticed that in the past the company that I am currently working for has never broke down payroll that is being processed through a third-party company. My question is: I went through the Chart of Accounts and the closest account that I see that would relate to Fed/State Unemployment tax, Workman's Compensation, FICA & Medicare Taxes is an account called Payroll Liabilities. Would I place all of the above expenses in that one account? Doesn't make sense. What should I do?
Carla
Reply to
carla spears

For the taxes that are withheld from the employee's paycheck (the ones you listed) are always booked to a Liability account. Payroll Liabilities would be okay. They are liabilities and not expenses. The company matched taxes get booked to a Payroll Tax expense line with the offset in the Liability account.
Some companies will separate them bwt 2 accounts. One for the state taxes and one for the Federal taxes. This makes it easier to see the amounts that go on the respective forms. I have even seen a third account for just the FUTA to isolate it from the rest of the Federal taxes.
Reply to
Laura

The third-party is already "grossing up" the payroll. The OP is just trying to determine how to record the taxes and liabilities in QB. She's not trying to do the payroll herself.
Reply to
Laura

I always thought that when you have a third party do your payroll that you have to do all the calculations. Live and learn.
Reply to
Allan Martin

Take a look at PayCycle:
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It integrates with QB nicely. They do all the calculations for you and you just download the info into QB. You pay the taxes but they tell you the information that you need. This is how most 3rd party payroll services work.
Reply to
Laura

Sure, no scam. I pay them 20 to 75 per month and they pay my payroll. I'm come bonus time they deliver also.
Reply to
Allan Martin

Have you ever done payroll to know how much time/energy is involved? Many people don't want to do payroll because of fears that they will mess it up. Others don't have more than a part time bookkeeper and can not afford the downtime while the payroll is being completed. They would rather let the experts do it. It can be time consuming so for some they feel the extra expense is worth it. YMMV.
Reply to
Laura

"Laura" wrote
That is all true. As well, smaller employers may want that level of privacy, in that, no employee knows what's going on with payroll (for better or worse), who makes what, who has garnishments, who gets what benefits, who has this and that withholding, who got a bonus, who did not.
Keeps the water cooler chit-chat focused on sports, religion or politics.
--
Paul A. Thomas, CPA
Athens, Georgia
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Reply to
Paul A Thomas

Additionally, this is the only easy way of getting direct deposit for small companies.
I can think of a few better topics.
Reply to
Laura

Hope you're having fun, Allan. How much longer, do you think, before she realizes you're just teasing?
"Allan Martin" wrote
payroll. I'm
Reply to
!-!

I was wondering the same thing. Once she realizes, he's gonna get a bop on the head.
Reply to
Gary

Would y'all please take this to a single group (preferably one that is interested) and set your follow-ups accordingly? I think it is rude to broadcast such trivia all over multiple groups that are not interested in this chit-chat.
Thanks
--
Mike B
Reply to
Mike B

I was trying to see just how far he would take it. I'm having fun with him but now the cats out of the bag . All done.
p.s sorry about the x-posting. I did not see the multiple newsgroups.
Reply to
Laura

!-! rignt now it really does not matter to me. I just helped get almost two hundred extensions out the door. I'm about to open up a tasty 16 ounce can of Bud (The king of beers) and endeavor to hunt the agents of naughty.
Life is good, real good.
Reply to
Allan Martin

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