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QuickBooks Payroll General Journal Entries

QuickBooks Payroll General Journal Entries

How to Make QuickBooks Payroll General Journal Entries?

QuickBooks Payroll subscription in tune with QuickBooks accounting software has easily shouldered the burden of bookkeepers and accountants in handling the financial sector of the business without much hassle. More and more businesses are moving towards QuickBooks payroll to process payroll tasks automatically and with the least scope of errors.

However, even business owners need to be aware of certain aspects of Payroll processing to ensure payroll activities are being completed authentically and accurately. Also, these entries should be reflected in General Ledger in a systematized way.

Within QuickBooks Payroll general journal entries showcase the amount of money being allocated as salaries towards employees, deductions made from their salary for miscellaneous benefits as well as taxes withheld.

QuickBooks Payroll users apply the provided information to calculate the required amount of federal tax obligation every quarter as well as the employee contributions made in the direction of benefits.

This payroll entry is treated as the summation of every item found on the pay stub of the employee. get more detail connect to QuickBooks Payroll Customer Service Number.

Item, Transactions, or Component of QB Payroll Journal Entries

Different components treated and used within QuickBooks Payroll general journal entries are listed below:

1. Salaries:

One of the most common, imperative general journal entries in QuickBooks Payroll is the salaries of the employees both gross and net along with deductions for benefits and tax withholdings.

Gross salary is treated as an expense as it is an incurred cost for the company. While on the one hand gross salary is the money that the business pays its employees for the work done and the Net Salary is the actual cash paid to employees after deducting the benefit’s deductions from the gross amount of salary.

2. Deductions:

The section of the amount withheld from the employee’s salary in favor of contribution towards certain benefits is termed as deductions. This item under Payroll general journal entries is categorized as liabilities for the company shown under payable account as it is the money owed to another institution on part of the employee paid by the company.

The most common deductions made by almost all businesses are taxes withheld and benefit deductions. Taxes Withheld / Withholding is the amount of payroll taxes that are forwarded towards country, city, state, or federal tax authorities on behalf of the employees. Federal / State income taxes payable along with FICA taxes payable come under general accounts of tax.

On the other hand Union dues, Health insurance along with retirement are termed as general accounts for benefits that an employee pays through payroll deductions. These amounts stay under liability accounts till the time business does not pay for the bill under the benefit and deduction account.

Check how to pull or fetch complete Journal Entry Report while using QB Payroll .

Lets Start Doing Journal Entry In QuickBooks

1. Payroll Journal Entry

One of the most common rules under accounting and subsequently under payroll processing is that anything adding cash and finances towards the business is considered under the Debit section while any increase in financial expense is to be considered under the Credit section.

Thus in tune with this theory, Salary Expense Account created for employees will have debit items of salary and any additional increment of the same while any increase in deductions and cash decrease in favor of the employee is to be recorded under the credit part.

The total amount under both parts needs to tally and balance each other out as per the journal entry principles employing the double entry bookkeeping method. Net pay or salary is the total amount left after cutting off the benefit and other deductions from the Gross Salary

Let’s take an example for better understanding:

DebitAmountCredit Amount
Salary Expense (Gross Pay)$300Federal Income Taxes Payable$25
  State Income Taxes Payable$5
  FICA Taxes Payable$10
  Health Insurance Payable$10
  Cash (Net Pay)$250
Total$300Total$300

How to Do Tax Journal Entry In Intuit Payroll

1. Payroll Tax Journal Entry

Apart from advancing taxes that the businesses have deducted from payroll, some specific taxes are to remain under the company’s liability to be paid. Although the taxes are not the same for every place and area, the most commonly paid are FICA and unemployment taxes.

It is deduced that the businesses’ amount contribution towards FICA should balance with the total amount incurred under FICA contribution of employee ( apart from the amount in the year 2011 and 2012 wherein the Social Security taxes in payroll for employees was down by 2%)

Let’s take an example for better understanding:

DebitAmountCreditAmount
Payroll Tax Expense (Total of Payables)$15FICA Taxes Payable (match total of employee FICA payroll deductions)$10
  SUTA Payable (state unemployment)$2
  FUTA Payable (federal unemployment)$3
Total$15Total$15
Get help with Journal Entry QB Payroll Mistakes and Problem

In case users want to discuss some advanced topic feel free to contact QuickBooks Payroll Toll-Free Number. The above detail of General Journal Entries under QuickBooks Payroll is just the upper part of the iceberg called Payroll Journal Entries. The topic itself is quite vast and for any other issue or information related to the same, users should immediately get in touch with the Payroll experts who are certified under QuickBooks Payroll.


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