If you use a payroll service, you’ll still want to record the totals along with any fees charged by your payroll vendor.
Before You Begin
- Add a Vendor for your payroll service company. This is where you’ll record the entry.
- You may need new Chart of Accounts Numbers for the payroll expenses and liabilities you want to record. Ask your accountant details.
Look up the Vendor (your payroll service vendor) and click the Check Calculation icon on the tool bar.
Record the Payroll Services Transaction
At the Check Calculation screen:
- Select a Post Date and Print Date. Usually these are both the date paychecks were issued.
- Choose the Checkbook (bank account) from which paychecks are paid.
- Enter a Check Number like 999 to indicate this was not an actual check, but an electronic transaction.
- Enter all the GL Accounts involved and their amounts, such as the:
- Gross payroll expense (adds to the total).
- Amounts withheld as liabilities (reduce the total deducted from your bank).
- Fee charged by the payroll company (adds to the total). Post this separately, if you pay it separately.
- The total of the Amount column should be the amount deducted from your bank, including the “net” amount of the paychecks plus any additional expenses, like the fee charged by the payroll service.
- Optional (not shown): In some cases your tax deposit might be included on the same transaction. See: Example of separate Tax Deposit check.
- Click Post Check.