User Support Forum

I am new to PCP and have had no training. I am confused on how to record the entry for EFT transactions. I see where the Fed Tax payable (2210) is being credited for every payroll check cut but there is also an automatic entry to debit SS/MC/FUTA (5970) for each payroll check. When I record the EFT transaction, I understand I should credit the bank (1110), but the debits for the entry make no sense because of the balances in the tax liability accounts. 2210's balance is the same as the amount of the EFT. If I debit that account then that leaves 5970's balance as is. Shouldn't 2210 & 5970 clear each month after making the EFT entry? I'm sorry if this is confusing, but I need help!

The expense account should be showing the church's expense for the employer portion of social security & medicare. That expense needs to stay. So, you pay the full amount of taxes out of the liability account.

I don't know why I didn't think of that. I wasn't seeing the employer part as an expense. Thank you so much. Makes complete sense now!