QuickBooks Payroll Journal Entry Report

Run Report To View All QB Payroll Journal Entries

The payroll process is maintained by every business irrespective of its size is a large corporation or small-sized firm. Every business needs a set of employees that can tackle the duties and productivity of the business to make it prosper and in turn, it is businesses that compensate by providing salaries to the employees.

This calculation of salary and other benefits is what payroll processing is all about. The topic itself is quite vast and for any other issue or information related to same, user should immediately get in touch with the QuickBooks Payroll Support Number for certified QuickBooks Payroll experts .

Under this process, the employer calculates the total of gross salary for each and every employee, write off the amount of benefit deductions that would result in net pay / salary. Gross salary basically indicates the wages remunerated to employee as per the agreement / job contract signed between him and the company and in tandem with the current labor rate going within the city.

On the other hand Net Salary is the amount of Gross salary left after reducing the deduction amount from the pay. Many companies prefer to use both Payroll Journal and Payroll Register for noting down all the financial transactions and payroll related data.

What is Payroll Journal?

Payroll Journal basically records those financial transactions which impacts the business due to miscellaneous payroll processes. It consists of a table with columns representing all those accounts that get impacted due to payroll processing including wages expense, insurance payable, tax payable, and cash, wherein –

• Wages Expense consists of details regarding the gross pay of all the employees.
• Insurance Payable contains data revolving around the premium of health insurance paid by the employees as deducted from their paychecks.
• The tax Payable category of account contains details around FICA Taxes and incomes owed by employees paid via deductions from employee’s pay.
• The cash account is the last account about the end wage amount forwarded to employees after deductions.

Payroll Journal is maintained to store all employee payroll-related details including the ones that are omitted and reported along with a record of the dollar amount.

Only employees’ related transactions are kept within the Payroll Journal. The rest of the transactions of financial nature happening within the business is reported under the cash account and general journal as well as ledger.

The full amount of dollars noted payroll journal equalizes for every payroll transaction recorded. This total dollar amount is recorded whenever the company processes its payroll details.

Payroll Journal can be accessed by every employee dealing with accounts of the business. Each Journal Entry comprises two elements, namely, Debits and Credits. After completion of each entry into journal, debit amount should be equal to credit amount.

Otherwise, the entry will be treated as incorrect. Even the most basic small business company will have at least following accounts in its payroll journal entry – Wages Expense, State Income Withholding Payable, Federal Income Withholding Payable, FICA Tax Payable, and Payroll Payable.

In the case of any other special payroll categories, the user will have to maintain a separate account. Suppose the company hosts a 401k plan for employees, then it will have to cater for the same with a special account named 401k Plan Expense Account.

Payroll Journal Components

A payroll Journal can have many accounts by the requirements and functions of the business. However, even the most basic small business company will have at least the following accounts in its payroll journal entry:

• Wages Expense
• State Income Withholding Payable
• Federal Income Withholding Payable
• FICA Tax Payable
• Payroll Payable

In the case of any other special payroll categories, the user will have to maintain a separate account. Suppose the company hosts a 401k plan for employees, then it will have to cater for the same with a special account named 401k Plan Expense Account.

Payroll Journal Debits

The payroll Expense account initially needs to be debited to increase the range of the expenses through payroll processing for the set period. This is where journal entry comes in – recording of the amount to a debit expense account is started through recording of transaction in a journal entry.

Such as – Suppose a business is left with payroll amount of $50,000, then the first entry in Journal Entry and subsequent report is debit of $50,000 expense account. In the general ledger, the Payroll Account will showcase an increase of $50,000 as a debit in an expense results in an increase in the expense.