Set-up Payroll Items


I am taking Accounting Capstone Project with Quickbooks class (DM Yard Services) In April of the project I use custom set-up to add new payroll items such as Social Security- Employee: deduction payroll item, U.S. Treasury-agency for employee-paid liability with FICA payable liability account.

For Social Security-Employer and Medicare- Employer that are company contribution, the textbook requests the liability account (employer-paid) is FICA payable, FICA Tax Expense (new account:Expense) and the agency to which liability is paid is U.S treasury. I create each payroll item under the account as follows:

Account name: FICA payable and FICA Tax expense

Account Type: Expense

However, the QB system rejects it. What is the correct account name I should imput for each payroll item?

For Fed. Unemployment (company contribution): U.S Treasury, FUTA Payable (new account: Other current liability) and FUTA Tax Expense (Expense new account). (Text book requests)

- Do I have to create two account under US Treasury which liability is paid to.

The add new payroll item- Agency for empployer-paid liability page accepts only one liability account to be created.

Please help me.

Thank you,



Hello there, mimosahc,

You don't need to set up additional federal tax payroll items because QuickBooks Desktop has created them for you.

  • Federal Unemployment
  • Federal Withholding
  • Advance Earned Income Credit
  • Medicare Company
  • Medicare Employee
  • Social Security Company
  • Social Security Employee

FICA is already part of the payroll expense; hence, the system will not allow you to add another one. FICA taxes are considered as payroll liabilities.

Check this article for more information:

Don't hesitate to leave a comment below if there's anything else I can be of help.

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