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When you are using a software solution to handle payrolls, you have to make sure the software product is updated with all the records. This not only keeps things organized but also makes you feel relaxed and get retrieved the data soon whenever you require it.
Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Desktop. Utilize import, export, and delete services of Dancing Numbers software.
What is Recording Payroll in QuickBooks all about?
You might be having an excel sheet containing all payroll details for individual employees. However, when you shift to QuickBooks, the payroll fields need to be respectively added to store employee information so that the payroll management is organized, efficient, and accurate.
For recording the payroll, it is recommended to make separate journal entries to record the accounting information.
Why Record Payroll in QuickBooks?
If you are using the QuickBooks Online International version, you might be aware that the payroll function is not present in it by default. Thus, journal entries become mandatory to be recorded.
Steps to Record Payroll in QuickBooks
The steps for recording the same for payroll in QuickBooks are discussed in the section below:
Step 1: Create the Manual Tracking Accounts
- Select the account type as Expense and create payroll expenses:
- Taxes
- Wages
- Choose the account type as Liabilities and create payroll liabilities:
- Federal Taxes (941/944)
- Federal Unemployment (940)
- [State] SUI/ETT
- [State] PIT/SDI
[You might add an expenses and liabilities account based on your locality rules and regulations.]
Step 2: Make Journal Entries
- Click on the Plus Sign
- Choose Journal Entry
- Select the paycheck date under the Date option
- Enter Entry # for your journal entry [Optional]
- Manage debit and credit accounts
- Debit expense account for tracking gross wages and company contribution
- Credit bank account payroll
- To make sure the entries to be made the next time are smooth and less time consuming, you can follow the below-mentioned steps:
- Click Make Recurring
- Enter Template Name, set Template Type as Unscheduled
- Click on Save Template
- Click Save
- To access the template:
- Go to the Gear icon
- Choose Recurring Transactions
- You may change amounts as required
Though the steps are quite easy to follow, first-time QuickBooks users might not be comfortable enough in conducting the setup process.
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+1-800-596-0806 or chat with experts.
Why Create Payroll accounts in QuickBooks?
To keep the records well-organized and readily available.
Why Journal Entries are Important?
If you are using the QuickBooks Online International version, you might be aware that the payroll function is not present in it by default. Thus, journal entries become mandatory to be recorded.
Why Creating a Template is recommended?
This is to ensure you do not have to do the same thing every time. A template per the interface helps create separate fields for the data to be entered.
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