I have just switched from in-house payroll to ADP. Now I don't know how to post payroll. Please help.
I transferred the full amount for salary, taxes, etc., from general checking account to a payroll account using online banking. Now I need to post in PC with details.
My two checking accounts:
01-1110-000 checking (from this account)
01-1112-000 payroll checking account (to this account)
How do I post in order to reflect monies removed from the liability & expense accounts?
01-2215 Fed
01-2217 Soc Sec
01-2219 Medi
01-2220 State
01-5306 Soc Sec Match
01-5315 Medi Match
01-2280 Retirement
01-5061 Salary
01-5062 Housing
Please help. Sorry for the long post.
How to Post Payroll
Moderators: Moderators, Tech Support
Re: How to Post Payroll
So is the payroll company doing all the payments? Taxes etc? Without knowing more about how you have everything setup, giving any advice is mostly speculative.RClark wrote:I have just switched from in-house payroll to ADP. Now I don't know how to post payroll. Please help.
I transferred the full amount for salary, taxes, etc., from general checking account to a payroll account using online banking. Now I need to post in PC with details.
My two checking accounts:
01-1110-000 checking (from this account)
01-1112-000 payroll checking account (to this account)
How do I post in order to reflect monies removed from the liability & expense accounts?
01-2215 Fed
01-2217 Soc Sec
01-2219 Medi
01-2220 State
01-5306 Soc Sec Match
01-5315 Medi Match
01-2280 Retirement
01-5061 Salary
01-5062 Housing
Please help. Sorry for the long post.
You say you have a separate checking account for online payment, is this used by ADP?
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: How to Post Payroll
Yes ADP is paying all payroll and taxes out of the payroll checking account.
First, I transfer the all money for salaries, taxes, etc., from general checking to payroll checking.
Then ADP pays payroll and pays state and fed taxes out of that payroll checking account.
Previously, I have paid payroll from the payroll module in PC. I have paid taxes from accounts payable. I do not know how to post the transfer of money from general checking to payroll checking AND have it reflect in the payroll and tax lines in fund accounting. Thanks,
First, I transfer the all money for salaries, taxes, etc., from general checking to payroll checking.
Then ADP pays payroll and pays state and fed taxes out of that payroll checking account.
Previously, I have paid payroll from the payroll module in PC. I have paid taxes from accounts payable. I do not know how to post the transfer of money from general checking to payroll checking AND have it reflect in the payroll and tax lines in fund accounting. Thanks,
Re: How to Post Payroll
1. Move the total amount of salary and employer taxes to the second account, by a simple debit/credit transaction in funds accounting. This would be the normal salary amounts before deductions, and the usual Social Security & Medicare employer taxes.RClark wrote:Yes ADP is paying all payroll and taxes out of the payroll checking account.
First, I transfer the all money for salaries, taxes, etc., from general checking to payroll checking.
Then ADP pays payroll and pays state and fed taxes out of that payroll checking account.
Previously, I have paid payroll from the payroll module in PC. I have paid taxes from accounts payable. I do not know how to post the transfer of money from general checking to payroll checking AND have it reflect in the payroll and tax lines in fund accounting. Thanks,
2. Then you would create transactions in Funds Accounting for the salary and taxes as you would normally but not using the liability accounts but the expense accounts as the debits and the payroll checking for the credit.
I'm going to assume that the money in the payroll account is automatically transferred by the bank, or you do it manually. In any case, I'm guessing the money is there.
So in Funds Accounting you would have this transaction to move the funds, using $1000.00 as an example:
01-1110-000 CR 1000.00
01-1112-000 DB 1000.00
Then in Funds Accounting create the transaction - using 900.00 as the salary paid this payroll:
01-1112-000 CR 1000.00
01-5100-000 DB 900.00 Total Salary
01-5400-000 DB 100.00 Employer Taxes
You would, of course, use the different expense accounts for each salary (IE: pastor, associate, admin, etc).
Does this help?
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: How to Post Payroll
Yes the money is transferred manually and already in the payroll account. Yes this is very helpful. I do have another question. Based on your response, I do not post in the Payroll Module but in Funds Accounting. I'm I reading this correctly? Thank you so much.
Re: How to Post Payroll
That's correct. Again, I'm assuming that ADP will be creating the W-2s, 941s and W-3s.RClark wrote:Yes the money is transferred manually and already in the payroll account. Yes this is very helpful. I do have another question. Based on your response, I do not post in the Payroll Module but in Funds Accounting. I'm I reading this correctly? Thank you so much.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: How to Post Payroll
Yes ADP is creating W-2s, 941s, and W-3. Thank you so much for your help!!