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  #1  
Old 05-27-2005, 09:35 AM
choquinga choquinga is offline
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Unhappy Journal entries

Hi,

I am currently using QuickBooks Pro 2004.

We use PayChex for payroll and I am manually recording all the payroll information into Quickbooks. I was first doing "Pay employees" but this creates one check per employee and to reconcile the bank it gets complicated since we have 15 employees, but if we keep growing it will be more difficult. So our accountant told me to do a journal entry. The problem is that when I do this, the first line is "Bank, credit the amount of that payroll" and the rest of the lines are salaries, taxes, etc. I use the employees names on each line to track this information, but when I ask for an employee report, it doesn't show me that journal entry!!!!.

Is there something I can do to see this transaction per employee???? help please!!!!

Sofia
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  #2  
Old 05-27-2005, 09:56 AM
Joey Joey is offline
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Sofia, if you're using PayChex for payroll, you are receiving payroll reports from them. You don't need to re-create them in QuickBooks.
Paychex processes payroll two ways. One way is that they issue their own paychecks and your checking account only gets one large debit or two for the entire pay period. The second way is that they actually issue paychecks that are drawn and clear individually on your company checking account and you need to check each one off as it clears your bank when you reconcile. Since you don't say which method you use, I can't really help you further. Which way does it clear your checking account so I can help you with the entry?
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  #3  
Old 05-27-2005, 10:28 AM
choquinga choquinga is offline
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Hi Joey,

Paychex deducts one large amount from our bank.

How would I record payroll information in Quickbooks though?

Thanks for your fast response.

Sofia
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  #4  
Old 05-27-2005, 11:27 AM
Joey Joey is offline
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Look carefully at the payroll reports that you get from Paychex. There is a report in there that shows the breakdown of the payroll debit that is going to post to your checking account. Make your journal entry from those numbers. You should have the following accounts listed (at least):

Gross Wages (TOTAL) Debit
Federal Taxes Withheld Credit
State Taxes Withheld Credit
SS Withheld Credit
Medicare Withheld Credit
Net paychecks amount to Checking Credit

That net amount will equal the amount that Paychex is going to debit your account for.
They also will normally do another bank charge for the payroll taxes that they pay if they make the payment for you. The breakdown for this will also be on one of their reports. Your accountant should be able to show you which reports you need to use and what numbers to include on your journal entry for both bank debits for the payroll.
If your accountant can't help you with this, you need to find an accountant who will. We can't really show you from here without seeing the actual reports involved.
To answer the original question, if you use Paychex, you need to look at the Paychex printouts for employee reports, not QuickBooks reports. The only way to track the activity by Employee is to manually recreate each payroll transaction in the QuickBooks file that Paychex is already doing. Paychex gives you the exact reports you are looking for each payday and quarterly.
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  #5  
Old 05-31-2005, 07:23 AM
JerryZ JerryZ is offline
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You can find instructions for entering payroll as a journal entry at www.cpa911.com, in the QuickBooks Tips section-the article is named How To Enter Data From Payroll Services. You'll also find a nifty article on how to enter the individual checks so you can reconcile the bank account- the article is named Reconciling the Payroll Account
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  #6  
Old 05-31-2005, 10:58 AM
Joey Joey is offline
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Just a note here. You only want to enter the individual checks if that is the way they clear your bank account. If there is only one large debit, then don't enter the individual checks.
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  #7  
Old 06-02-2005, 09:04 AM
choquinga choquinga is offline
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Thank you guys!

Thank you for your answers.

I do understand the reports from Paychex and how it's broken down. I guess what I was trying to do is just be able to see the acitivity by employee from Quickbooks, but like you both said, that will create one check per employee in our books although the bank shows only one debit amount for all employees.

What I was saying in my first message was that if I create a journal entry with the payroll information, even thought I use employee names in all the item lines, this activity won't show on the employee report.

So I don't know what is best to do from an accounting perspective. To do the journal entry that won't show activity by employee or to do a check by employee.

Thank you for all your answers though, I am following the instructions for the payroll set up as instructed on www.cpa911.com. Thanks!
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