3rd Party Payroll

Make a journal entry using the payroll totals.  Debit payroll for the total wages and credit the various withholding accounts and checking to balance the entry.

Hi  Tammy

How I do it is enter total  gross payroll minus payroll tax liablities that employee  pays and heath insurance garnishment etc. and payroll tax burden that the employers pay.

If you have to clear the payroll checks then I would enter the name of employee and the net amount

then I would put the gross amount in the salary and wages then  I would minus on that check the employees taxes into a clearing account and the garnishments into a clearing account. I would also minus health insurance paid by the employees. When the taxes hit my bank account i clear out the tax clearing account to zero and the remaining would go to employers tax burden. And with Garnishment the same way. If you are only doing one entry then use first method

Thank you

I use a third party payroll service, but I also use QB payroll.  I just set up all payroll items that are paid to the 3rd party, including payroll taxes to hit an in and out bank account.  I process payroll quickly through payroll, I am able to class my payroll and job cost everything in QB which gives me a better P&L but I use a third party payroll company.  I just have to double check that the net check comes out the same and the employer taxes match.  You will know if your in and out account zeros each payroll.