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Outsourced Payroll
Posted: Tue Mar 08, 2022 3:00 pm
by 180 Faith Ministries
Please bear with me I'm new to PC. We outsource our payroll, the company automatically deducts the salary and housing allowance as well as all the taxes from our checking account. They supply the W2 at the end of the year. How do I keep track of the salary, housing allowance and taxes? Thanks
Re: Outsourced Payroll
Posted: Tue Mar 08, 2022 10:19 pm
by NeilZ
180 Faith Ministries wrote: ↑Tue Mar 08, 2022 3:00 pm
Please bear with me I'm new to PC. We outsource our payroll, the company automatically deducts the salary and housing allowance as well as all the taxes from our checking account. They supply the W2 at the end of the year. How do I keep track of the salary, housing allowance and taxes? Thanks
You would create a manual check to reflect the amounts paid using the normal expense accounts for salary, etc. No need to enter a check number just use something like 01/22 PR EFT (January 2022 Payroll Electronic Funds Transfer)
My question is this, do they file all the income taxes too?
Re: Outsourced Payroll
Posted: Tue Mar 08, 2022 10:32 pm
by 180 Faith Ministries
yes, they pay all the taxes.
Re: Outsourced Payroll
Posted: Wed Mar 09, 2022 10:48 am
by NeilZ
In that case, don't forget to add up all the employer's taxes (SS & Medicare), and any state requirements for the employer's tax expense. The salary for the period and housing allowance should be 'fixed' if they are salaried employees.