Question

Wage Garnishment using third party payroll company. D isn't equal C

Forum|Forum|5 years ago
October 11, 2020
1 reply
0 views

Hi friends. I got stuck with Wages Garnishment journal entries.

How can I balance journal entries with wages garnishment? Something is missing and I can't get what. We use Paychex for our payroll processing.

Thanks!

QuickBooks Desktop

Adrian_A

Hello there, VandP.

We can create a Check to balance your journal entry. Thus, I recommend reaching out to your accountant. They can determine if you'll need to use the expense account that your third-party software uses, or there's a need to create a new one.

Here's how to create a Check:

From the Banking menu, select Write Checks.
Select a BANK ACCOUNT.
Go to the Expenses tab.
Select an expense account.
Enter an AMOUNT and then make sure that D and C has the same amount to it balance.
Click Save & Close.

Once done, you can reconcile the amount to the payroll JE. You can check this guide for more information: Reconcile an account in QuickBooks Desktop.

Keep me posted if you have other concerns. Have a great day!

V

VandPAuthor

Thank you so much for your reply, but I have a different question. I don't need to cut a check, Payroll company does everything for us, my question is how to balance Debit & Credit.

For instance:

On 10/01/20

D C

Gross wages Expense $1,000

Employer Taxes Expense $10

Employer Taxes Liabil $10

Employee Taxes Liabil $10

Checking account $900

And then my question is where to put Garnishment and is it Liability or Expense? $10

Checking account $10

On 10/02/20

D C

Employer Taxes Liabil $10

Employee Taxes Liabil $10

Checking account $20

Anything else on 10/02/20 for Garnishment? I don't think so though

Thank you!

V

VandPAuthor

Still waiting for the answer. Thank you!

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