cannot create accounts payable entries for payroll taxes

[jonnav35]

We have an outside company currently doing payroll so I am entering the information as I was writing a manual check.

Everything seemed fine until I went to create my ap entries - nothing is there except my local taxes; no federal or state. When I look at maintain employees, all pay items are checked as I thought they should be - only amounts showing are once again local. When I look at the check history, it shows all taxes being deducted but that is the only place I see it. I have racked my brain and tried looking everywhere - I would so very much appreciate help!

Thanks in advance -
Donna

[NeilZ]

We have an outside company currently doing payroll so I am entering the information as I was writing a manual check.

Everything seemed fine until I went to create my ap entries - nothing is there except my local taxes; no federal or state. When I look at maintain employees, all pay items are checked as I thought they should be - only amounts showing are once again local. When I look at the check history, it shows all taxes being deducted but that is the only place I see it. I have racked my brain and tried looking everywhere - I would so very much appreciate help!

Thanks in advance -
Donna

How are you running payroll? Are you entering all the data by hand? If you have an outside company doing payroll, why aren't they also paying the taxes, are they the ones cutting the checks? If not, why are you using an outside company then, when you can do it all from within Powerchurch.

As far as Accounts Payable entries, are you sure you have the Federal & State Item Descriptions setup to use a liability account?

Not knowing how you're using the payroll system, I can't comment further.

[jonnav35]

Right now we are using an outside company to do payroll because we are just setting up Powerchurch. I am actually going back to January 2017 and entering everything to date. I do plan to do payroll in house once we get set up.

I am entering the information manually so that my reports show payroll, my checking account reflects the correct amount, etc... Everything went well until I tried creating ap entries. I was trying to create these entries so I can show the taxes paid. Currently they just show as liabilities. (Yes, I double checked and they are using liability accounts).

As I said, my local taxes show but that is all. I double checked the set up and they are done just the same. I thought perhaps there was something I am missing, well, I am or it would work!

Thanks so much. I hope that is the information you needed.

[NeilZ]

Right now we are using an outside company to do payroll because we are just setting up Powerchurch. I am actually going back to January 2017 and entering everything to date. I do plan to do payroll in house once we get set up.

I am entering the information manually so that my reports show payroll, my checking account reflects the correct amount, etc... Everything went well until I tried creating ap entries. I was trying to create these entries so I can show the taxes paid. Currently they just show as liabilities. (Yes, I double checked and they are using liability accounts).

As I said, my local taxes show but that is all. I double checked the set up and they are done just the same. I thought perhaps there was something I am missing, well, I am or it would work!

Thanks so much. I hope that is the information you needed.

OK ... how are you entering the data? Are you running the system as you would a normal payroll, but entering the tax amounts as manual entries to match with the amounts deducted by the payroll company?

You do have the vendors setup in Accounts Payable, IRS & State Revenue? Are they assigned to the FITW, Medicate & State Item Descriptions?

What do does the Item Summary Report show for deductions.

[jonnav35]

Please forgive my delay - was quite sick.

I am entering the data as if I was processing payroll - using a manual check. The tax amounts are all calculated for me (I do have to make changes to one salary for fed withholding).

I do have vendors set up in Accounts Payable. I believe yes I do have them assigned correctly. One question there though - what expense account do I debit for the employee share of taxes? Perhaps I am wrong but why would I be debiting an expense account when I pay the employee taxes? They were a liability correct? I thought that the payroll tax expense account was just for the portion of our employer taxes. Asking because when I set up the IRS, etc as a vendor - the section on the bottom asks for an expense account and bank account?

My summary report shows all the deductions as they should be. The only time they "disappear" is when I go to create ap entries.

UGH.

Thanks again for trying to get me through this.

[NeilZ]

Please forgive my delay - was quite sick.

I am entering the data as if I was processing payroll - using a manual check. The tax amounts are all calculated for me (I do have to make changes to one salary for fed withholding).

I do have vendors set up in Accounts Payable. I believe yes I do have them assigned correctly. One question there though - what expense account do I debit for the employee share of taxes?

You do not DEBIT any account for the employee share of taxes, that comes out of their salary. If the Item Description is asking you for an Expense account, you're using the wrong Item Description Item, this should be the Tax Deduction type. The only tax item that has an expense account is the EMPLOYER SS & Medicare taxes, the EMPLOYEE SS & Medicare is deducted from their salary.

Perhaps I am wrong but why would I be debiting an expense account when I pay the employee taxes? They were a liability correct? I thought that the payroll tax expense account was just for the portion of our employer taxes. Asking because when I set up the IRS, etc as a vendor - the section on the bottom asks for an expense account and bank account?

You can leave the Expense Account line in the Vendor setup blank, the Payroll system's "Create AP Entries" will use the proper account. Here's what I have for the US Treasury vendor:

My summary report shows all the deductions as they should be. The only time they "disappear" is when I go to create ap entries.

UGH.

Thanks again for trying to get me through this.

This is why you're not seeing the correct items when accessing PAYROLL -> Create AP Entries. The tax Item Descriptions and vendor may not be setup correctly. I suggest locating the PCPlus manual or the PCPLUS115.PDF manual in the PCPLUS115 directory where the program is located. Starting on page 289, the Maintain Item Descriptions area of payroll is covered.

Here are the Item Descriptions I have setup for FITW, Social Security, & Medicare:





Here's what I have for state taxes:

[NeilZ]

FWIW .. when you do Payroll's Create AP Entries, if you have the vendor for the US Treasury you have setup as the vendor in the FITW, SS, & Medicare Item Descriptions, the system will pull up all those taxes withheld (FITW, SS, & Medicare) into one check, it will look something like this:



If you click on the DETAILS button, you'll see this, with your employees listed (this was cropped out for privacy reasons):



Each amount put into FITW, SS, & Medicare by each employee is listed, and the correct liability account will show up in the Accounts Payable module. If you use the EFTPS online system to pay your taxes, you should choose Create as MANUAL CHECK otherwise leave as Invoice. When you go to AP, you'll see the breakdown look like this:

[jonnav35]

Thanks.

I went over my set up as compared to yours and it is exactly the same. I have left the expense account blank as well.

When I go to create ap entries, all that comes up is my local!! I purchased the training and have gone over the payroll again and again looking for the answer. I will try the online manual.

If you think of anything else, I will try it!!

[NeilZ]

Thanks.

I went over my set up as compared to yours and it is exactly the same. I have left the expense account blank as well.

When I go to create ap entries, all that comes up is my local!! I purchased the training and have gone over the payroll again and again looking for the answer. I will try the online manual.

If you think of anything else, I will try it!!

Which entries are the same? I cannot assist if you don't give me full descriptions.

Which Item Descriptions are setup the same? FITW? Social Security? Medicare?

When you go to the Maintain List of Employees and select an employee. How are the tax pay items setup? Is the Federal Withholding properly setup? Are you using the built-in tax tables, or the amounts that the payroll company is giving you. If you're using the tax tables are they properly selected, if you're using amounts from the company, is manual amount selected as the tax table?

Is the checkbox for Use default GF accounts for this item checked?

You also mentioned ...I do have to make changes to one salary for fed withholding ... why?? You shouldn't change anything as that affects any W2 you may be printing out.

With all this going on, why do you use a payroll company in the first place for it appears you're doing everything but the calculations, and Powerchurch can do that for you?

[jonnav35]

Which entries are the same? I cannot assist if you don't give me full descriptions.

Which Item Descriptions are setup the same? FITW? Social Security? Medicare?

When you go to the Maintain List of Employees and select an employee. How are the tax pay items setup? Is the Federal Withholding properly setup? Are you using the built-in tax tables, or the amounts that the payroll company is giving you. If you're using the tax tables are they properly selected, if you're using amounts from the company, is manual amount selected as the tax table?

Is the checkbox for Use default GF accounts for this item checked?

You also mentioned ...I do have to make changes to one salary for fed withholding ... why?? You shouldn't change anything as that affects any W2 you may be printing out.

With all this going on, why do you use a payroll company in the first place for it appears you're doing everything but the calculations, and Powerchurch can do that for you?

My vendor records and maintain item descriptions are the same. I apologize if I am not giving you enough information, trying my best as I do appreciate all of your time with this.

I am not sure how to screen shot and paste here. I did not check use default GL accounts for Medicare or SS as I created their own liability accounts. I did checking the box and just using the federal withholding liability account in case that was the problem but it still didn't work out.

I am not sure why the federal withholding is different for one employee unless the payroll company is making an error. I change it to match theirs. I set this up using the federal tax tables as provided through the links on Powerchurch. As I said, I purchased the online training and went through all of the instructions there to set up payroll. I have watched and rewatched and still, I am stumped.

I am only using a payroll company because we are just setting Powerchurch up. I am entering info from Jan 2017 to date (we are small, not a ton of data so it isn't bad - figured it was easier than starting mid year). As soon as I know I have this down pat, I am going to start doing payroll in house. Hopefully that is soon.

I will provide whatever information you need, please advise.

Thank you. Blessings!

[jonnav35]

If needed, I will drive to Canonsburg and let you see everything for yourself!

[NeilZ]

My vendor records and maintain item descriptions are the same. I apologize if I am not giving you enough information, trying my best as I do appreciate all of your time with this.

I am not sure how to screen shot and paste here. I did not check use default GL accounts for Medicare or SS as I created their own liability accounts. I did checking the box and just using the federal withholding liability account in case that was the problem but it still didn't work out.

That box should be checked on ALL the tax payroll items, as it will then use the accounts as setup in the Maintain Item Description function. If you're expecting that your entries will then appear, that won't happen as the entries were already done and the system used the previous 'unchecked' setting. I'm not sure where those entries went, really hard to tell.

I am not sure why the federal withholding is different for one employee unless the payroll company is making an error. I change it to match theirs. I set this up using the federal tax tables as provided through the links on Powerchurch. As I said, I purchased the online training and went through all of the instructions there to set up payroll. I have watched and rewatched and still, I am stumped.

Is that one employee the pastor? Are you adjusting the withholding higher or lower?

I am only using a payroll company because we are just setting Powerchurch up. I am entering info from Jan 2017 to date (we are small, not a ton of data so it isn't bad - figured it was easier than starting mid year). As soon as I know I have this down pat, I am going to start doing payroll in house. Hopefully that is soon.

I will provide whatever information you need, please advise.

Thank you. Blessings!

Sometimes its best just to jump right in.

[NeilZ]

If needed, I will drive to Canonsburg and let you see everything for yourself!

I'm not even close to Canonsburg ... about an hour and 10 minutes away, depending on traffic.

[jonnav35]

Two months later and I am revisiting this problem. I have still not figured out the reason this is not working. If anyone has any new input, please do tell! I am going to just do things manually instead of using the feature to create ap entries. Thanks so much for all the advice so far.

[NeilZ]

Two months later and I am revisiting this problem. I have still not figured out the reason this is not working. If anyone has any new input, please do tell! I am going to just do things manually instead of using the feature to create ap entries. Thanks so much for all the advice so far.

What is not working? If you're entering the data into Payroll as you said you were doing (manually entering salary, withheld taxes, etc), then print stubs, the system will save the data to the appropriate accounts.

If you run a Cash Management Report and do not see ANY amounts listed under the liability portion of the report, then you're doing entering the data correctly.