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M
Miguel78
January 28, 2021
Question

How to enter 3rd party payroll in Quick Books.

  • January 28, 2021
  • 4 replies
  • 0 views

Help, How to enter 3rd party payroll in Quick Books, few employees Texas LLC we have Simple IRA (Empl. Ded. + Company match), Medical and Dental deductions, everybody direct deposit. I am using QB Pro Desktop 2019. (We don't have the payroll subscription)

 

Any help will be really appreciated.

 

Thanks

4 replies

IamjuViel
IamjuViel
January 28, 2021

Hello there, @Miguel78.

 

You can create a journal entry to enter your employees' third-party payroll information. Let's first make sure to create the necessary expense accounts use to track your payroll expenses. Here's how:

  1. Go to the Lists menu.
  2. Choose Chart of Accounts.
  3. Click the Account drop-down arrow.
  4. Select New.
  5. Pick Expense. 
  6. Enter the account details.  
  7. Click Save and Close. 

You can repeat the same steps to create all the necessary accounts for each payroll income, deduction, contribution and liabilities.  

Once completed. you can now create a journal entry to record your employees deduction, contribution and liabilities.

  1. Go to the Company menu.
  2. Select Make General Journal Entries.
  3. Fill out the fields to create your journal entry.
  4. Make sure your debits equal your credits when you’re done.
  5. Click Save or Save & Close. 

Also, I'd recommend consulting with an accountant so you'd be guided in making you've assigned the accurate accounts. 

 

Keep me posted if you have other questions about tracking your income and expense transactions in QuickBooks. I'm always here to help.

B
barocco
November 26, 2021

Okay, so how then do I record the payments made to the third-party firm that handles the payroll?  I have entered journal entries for the debits and credits, but where does it show that I actually paid for all the taxes to the payroll service?

 

MJoy_D
MJoy_D
November 26, 2021

I can share some information that can help you record your payroll transactions, @barocco.

 

If you've added your payroll transactions through journal entries or by writing a check, it can't affect your taxes or payroll taxes account. Check these articles for more information about recording paychecks made outside of QuickBooks: Set up manual payroll without a subscription in QuickBooks Desktop.

 

To show those items or accounts that you've recorded, you can run a payroll liability report. Refer to this article for more information about payroll items assigned to a liability account, deductions, and company contributions: Run payroll liability balances report.

 

To filter the report based on your needs, here's a guide on how to  customize payroll and employee reports.

 

I'm always here if you need further help in recording your transactions and or anything else. I'm always glad to help in any way I can. Have a great rest of the day!

Fiat Lux - ASIA
Fiat Lux - ASIA
January 29, 2021

@Miguel78 

If your 3rd party payroll app doesn't support QB, you may import the data as journal entries by using one of these importer tools.

https://transactionpro.grsm.io/qbd

https://partners.saasant.com/affiliate/idevaffiliate.php?id=5051_2

 

M
Miguel78Author
January 29, 2021

Thank you everybody for all your help. 

 

 

    C
    Carneil_C
    November 29, 2021

    Hi, @barocco. Thank you for reaching the Community. I’d be glad to help you fix this.

     

    Some payroll services allow you to import paychecks directly into QuickBooks Online. If what you're using doesn't have this option, you can manually enter this payroll information.

     

    I’d also suggest consulting your accountant to make sure its accuracy about these transactions.

     

    Here's how to enter the payroll payments in QuickBooks Online:

     

    First, you'll have to create these accounts for tracking:

    • Payroll Expenses: Wages
    • Payroll Expenses: Taxes
    • Payroll Liabilities: Federal Taxes (941/944)
    • Payroll Liabilities: Federal Unemployment (940)
    • Payroll Liabilities: [State] SUI/ETT
    • Payroll Liabilities: [State] PIT/SDI

    Then, Enter the payroll paychecks into QuickBooks Online:

     

    1. Get your employees' payroll pay stubs or a payroll report from your payroll service.
    2. Select + New.
    3. Select Journal Entry.
    4. Under the Journal date, enter the paycheck date.
    5. If you want to track the paycheck number, enter it in the Journal no. field.

    For more information on how to manually track the payroll payments, please check out this article: Manually enter payroll paychecks in QuickBooks Online.

     

    I'll be glad to help you if you have any other questions.​ Have a good day!

    H
    heazim1
    December 20, 2021

    I understand the two JE's for the payroll outside of QB, and then entering individual checks without check numbers for each employee, using account "payroll clearing"  What account should the actual total net DD withdrawal be?

     

    Ie. if I were using paychex flex and they took out the total net payroll withdrawal, what account is that?

    A
    AileneA
    December 20, 2021

    Hello, heazim1. 

     

    Thank you for reaching out to the Community. Let's create new accounts in your Chart of Accounts to track the bank account you used in Paychex flex. I'll show you how to do it: 

     

    1. Select Expenses as the account type. 
    2. In the Detail Type choose  Payroll Expenses.

     

    Then we can create Journal entry. You can follow the steps above shared my colleague.   

     

    Though, I highly suggest consulting your accountant or accounting professional for guidance on which account receives the debit and the credit side of the transaction. This is to ensure that the books are accurate for your business.

     

    See this article for more information about adding  3rd party payroll in QuickBooks: Manually enter payroll paychecks in QuickBooks Online. 

     

    Please know that I'm only a post away if you have any other issues or concerns. I'll be more than willing to assist. Have a good one!

    M
    Mrs_Array
    June 2, 2024

    Hello everyone,

     

    I actually worked with a Quickbooks job costing coach in order to figure this out. She was great. Her name is PennyLane. You can enter employees as customers to acheive the same reporting level. You can split line items by customer on the checks. It's the only way I know to achieve the level of detail needed for tax return information at the end of the year.

     

    I saw everyone had this question and I felt the need to share. Hope this helps.

    @Miguel78 @Rainflurry @macbuilthomes @MikeTLive @deannaldh 

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