Restricted Accounts

[RDPHELPS]

We want to track payroll tax liability using a restricted account #3260 and additionally we want to move that money to our savings account #1220-002 from our main checking account #1120 and release it at end of each quarter when we pay the taxes. We understand how to transfer the money from checking to savings and back, but what is the second entry to get it into the restricted account so that we can release it at the end of the quarter? Thanks for any help.

[NeilZ]

We want to track payroll tax liability using a restricted account #3260 and additionally we want to move that money to our savings account #1220-002 from our main checking account #1120 and release it at end of each quarter when we pay the taxes. We understand how to transfer the money from checking to savings and back, but what is the second entry to get it into the restricted account so that we can release it at the end of the quarter? Thanks for any help.

Normally, the tax liability goes into a liability account (2000 level), 3000 are equity/asset accounts. I understand that you want to put an amount into the savings account, but unless you're making an insane amount of interest, you're not making that much on the funds.

Also, are you talking Fed/SS taxes, State, or local? The reason i ask is that the IRS made us switch to a monthly deposit schedule, and our state requires monthly payments.