User Support Forum

We use an outside payroll provider for staff that directly deposits into staff personal bank accounts. We have the money withdrawn on a Tuesday before payday Friday where we post it to net payable account (2225). We also keep up the PC 11.5 payroll module to match the provider information. The problem we encounter is as follows. When we process the payroll, we change the account to direct deposit. But there is no way to change the "maintain item descriptor" for the income salary part to a net payable - it only allows a bank account. What we have to do, is after we post the payroll to fund accounting, we have to go and manually change each payroll credit from the bank account to the net salary account before we post it in the Fund Accounting. It would be great if the income accounts for payroll in the setup could be accessed by a payable account. Any suggestions? It's not really a bad problem unless the Fund Accounting is posted and the credit from the bank is not changed to net payable. Then we have to go and correct the accounts.

harveydutkewich wrote:We use an outside payroll provider for staff that directly deposits into staff personal bank accounts. We have the money withdrawn on a Tuesday before payday Friday where we post it to net payable account (2225). We also keep up the PC 11.5 payroll module to match the provider information. The problem we encounter is as follows. When we process the payroll, we change the account to direct deposit. But there is no way to change the "maintain item descriptor" for the income salary part to a net payable - it only allows a bank account. What we have to do, is after we post the payroll to fund accounting, we have to go and manually change each payroll credit from the bank account to the net salary account before we post it in the Fund Accounting. It would be great if the income accounts for payroll in the setup could be accessed by a payable account. Any suggestions? It's not really a bad problem unless the Fund Accounting is posted and the credit from the bank is not changed to net payable. Then we have to go and correct the accounts.

Payroll uses a few types of accounts:

1. Expense
2. Asset (checking)
3. Liability (taxes - insurance payments - etc)

It doesn't use any 'Income' accounts. Your net payable account is apparently a liablity account. What do you do with this account after you post the payroll to it, deduct it from your checking account in some way ??

In reality the 'Direct Deposit' option is for use with a direct deposit service using a file that is exported from PCPlus . You should be entering either EFT for a check number, or the number that the bank uses.

If you are not maintaining the tax data yourself, and paying your tax deposits, then issuing the W-2s, I'd not use the Payroll system, just enter the data as transactions directly into Funds Accounting.