payroll taxes

[bjsbrown65]

I have gotten confused. When I deposit taxes to IRS and then record in Power Church, should I be using the liability account or the payroll expense account to record the employer's portion. will someone show an example, please.

[NeilZ]

I have gotten confused. When I deposit taxes to IRS and then record in Power Church, should I be using the liability account or the payroll expense account to record the employer's portion. will someone show an example, please.

First off you should have a employer's Social Security pay item and an employer's Medicare pay item setup in Payroll. These pay items should have your Social Security expense account set as the expense, and the Social Security liability account set as the liability.

Along with the employee pay items, all the funds get put in the liability account when the payroll is run. Then when you pay your taxes, you debit the liability accounts and credit the checking account:

Code: Select all

01-1110-000       Checking                                           CR 1287.19
01-2215-000       Federal Withholding            DB 984.85
01-2217-000       Social Security                DB 247.62
01-2219-000       Medicare                       DB  54.92 

[bjsbrown65]

Thank you It seems I am doing it right. I just got confused when I wrote the check for deposit.