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How do I post the money payroll paid for child support?

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have an employee that pays child support thru garnishment. When posting my 'Enter Bills' and 'Pay Bills', how is the check to child support posted?

QuickBooks Desktop

qbteachmtAnswer

You need to Answer the question and not keep starting this topic Over as a new topic.

What does your Payroll Entry look like, now?

If you want help, you need to Show Us what you do.

Example:

I have two people making $10 an hour, for a 40 our work week and one has $50 child support deduction.

Gross Wages $800

Employer Share of Taxes $XX

Employee Share of Taxes $YY

Takehome checks = Not including the $50, if You need to send it on. That is a Split out, as if that is a different person's Takehome. You would post it to Liability, then Write Check and Pay that liability.

qbteachmtAnswer

You need to Answer the question and not keep starting this topic Over as a new topic.

What does your Payroll Entry look like, now?

If you want help, you need to Show Us what you do.

Example:

I have two people making $10 an hour, for a 40 our work week and one has $50 child support deduction.

Gross Wages $800

Employer Share of Taxes $XX

Employee Share of Taxes $YY

Takehome checks = Not including the $50, if You need to send it on. That is a Split out, as if that is a different person's Takehome. You would post it to Liability, then Write Check and Pay that liability.

N

nadeenAuthor

thank you. I got it, no further help is needed on this.

qbteachmt

Don't use Bills; this is not your vendor and this is not a Bill to be paid later. You, the employer, are handling that employee's share of Taxes and Child Support, because the employee will not be paying it out themselves. None of this is a Bill to a vendor name. It's all part of Payroll Liabilities.

Thanks for linking to an older article; it's nice to know they still exist and still apply :)

N

nadeenAuthor

payroll is not done thru QBs we have separate company ADP, would I pay the bill under ads with Child Support Garnishment as label?

qbteachmt

"would I pay the bill under ads with Child Support Garnishment as label?"

Child Support divisions or enforcement is not sending you a Bill to Pay Later. AP is not involved. The Child Support is already deducted from Net Take home.

There is no Bill in this process.

Let's take One Example:

Joe is supposed to get $300 takehome, so enter everything as usual.

Now, Job also has $50 to go to child support. You didn't not state if You sent that or ADP sent that. It Doesn't Really matter, because it is a Diversion or further allocation of Joe's $300:

Joe got $250

Child Support enforcement gets the other $50

N

nadeenAuthor

this doesn't help me, I still don't know where or how to enter the $50 that enforcement gets

R

Rasa-LilaM

Hi there nadeen,

I'm here to help you account for child support.

Since the garnishment isn't an employer's expense, it will be posted to your liability account. In addition to this, I've found a helpful answer that was previously posted by our awesome Community AllStar qbteachmt: https://community.intuit.com/questions/826439

This should help you input your child support to the correct account. If you have any questions, feel free to leave a comment below. I'll be here to help.

qbteachmt

"I still don't know where or how to enter the $50 that enforcement gets"

You seem to be using a Bill for payroll, instead of a Check? What do you list on that Bill? We don't know what your Input looks like.

And who sends the child support payment?

J

julie31415

It took me a while to figure out how to do it as it was not obvious. I had to do a wage levy (in my case for taxes for a particular employee). I followed steps here to create the wage levy to reduce the check in the payroll.

https://community.intuit.com/articles/1762716-set-up-a-payroll-garnishment-item

After that was done, in order to pay out the levy collected, I created a check to the Name of the agency setup in the payroll garnishment item (where the money would go - for me this was the MA dept of Revenue). In the account field for the check, I typed in payroll liabilities - Quick books picked this up and brought me to a screen where i could chose to 'Pay Payroll Liabilities'. I then selected the appropriate liability account that I had set up in the payroll garnishment item.

Hope this helps!

V

vero714

In this case - Which liability account do you have for this garnishment?

Currently my child support payment is being associated to my payroll wages account, however I think that is incorrect. Your thoughts?

This is making my payroll wages increase tremendously.

D

daisydays22

@vero714

I have this same question. Currently child support payment for one of our employees is being associated to payroll wages account as well. I think this is accurate, although I have my doubts. As someone stated above this is not a company bill but a Diversion or further allocation of the employee's money. That's what makes me think it should be correct but would love to hear otherwise if not.

K

kimsmoke20

I have a third party for payroll. They deduct the child support from the employee and pay it to the state. My bank sends this as a separate payroll expense from the actual payroll, taxes and monthly cost. Do I need to do anything at all or just list it as payroll expense like the others?

Rubielyn_J

Thanks for joining this thread, @kimsmoke20.

Since you're using a third-party app to process payroll, you can consider the steps provided by @qbteachmt in the thread. This way, you can record the child support that was deducted from the payroll and paid to the agency.

In addition, I advise seeking additional assistance from an accountant. They are more qualified to know how to record this so that your books are accurate.

I'm also attaching the following articles to help add deductions to your employee:

Please let me know if you have any other queries about recording child support in QBO. I'll be happy to offer my assistance. Have a good one!

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