Sunday, December 4, 2011

When using quickbooks what account is a payroll service charge put under?

I use a payroll service to provide payroll for a few employees. This fee comes out of my business checking account twice a month. I am wondering when entering the actual charge the payroll sevice charges to use their services what account would I enter this under when using Quickbooks? ( I also have been puting the actual payroll for the employees under "payroll clearing" and the payroll taxes under "taxes paid", do you think that is correct as well?) Thank you|||If you haven't altered your chart of accounts and are using the basic they provide the payroll goes to payroll expenses, the payroll taxes go to taxes (there isn't a separate payroll tax in the basic chart of accounts for a small business you don't need to add it as all taxes including payroll taxes are reported to the same line on your Schedule C) and the fee to your payroll company goes to professional fees.|||Hi Sherri:





We have many clients that we help set up with their Quickbooks entries and this is what they need..





The fees go under Professional Fees.


The employees pay goes under Payroll Expense.


The taxes go under Payroll Tax Expense.





Hope this helps and please let me know if you have any other questions. Have a lovely weekend!





Paul Devlin


APlus Payroll


Springfield, MO.

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