How do I record outside payroll service in QuickBooks?

Do they give you a report after each payroll? Do they divide salaries from taxes and such?

We used to use ADP to process our payroll. I just entered the lump sum amounts into QB so that we would have the payroll expenses and the taxes for our records.

I set up Expense accounts for all my payroll taxes. I set up a Payroll Expense account with sub accounts for salaries and paying for the payroll services.

I just posted the lump sums into the various accounts when I received the reports...I am assuming that the money is withdrawn from your bank account and that you report that withdrawal in QB. I report my ADP withdrawals in QB and applied to various payroll accounts.

Would that work for you?

In the FAQs, Intuit gives an answer to your question -- http://community.intuit.com/qu...

If you are using a outside payroll service that provides SERVICE, you might use our method:

We recommend that our payroll clients enter the net amount of each check and each disbursement. This helps them know their current bank balance and helps with bank reconciliations. This does overstate 'payroll taxes' and understate 'salaries and wages' - so a yearend adjusting entry is needed (which we provide). AND at yearend we recommend our clients enter their yearend payroll tax and related disbursements in DECEMBER - so all related payroll entries are in the same year. (We also reconcile our payroll details to theirs to be sure all checks were entered.)

The number of employees (and the number of payroll checks) would be a factor in which method you go with.

Best wishes, AccountAbility Solutions - connecting your books with QuickBooks