How do I post payroll taxes?

[kimr@dcc]

I run the payroll on PowerChurch for our four employees, but we use an accounting firm to pay the payroll taxes. I send them a report monthly that shows payroll details for each employee. They send me an email letting me know how much was debited from our account for the taxes. I was entering the amount they deducted in the payroll taxes expense fund, but today I realized that account was debited automatically when payroll is run. So, what account(s) should I be entering the amounts in?

[NeilZ]

I run the payroll on PowerChurch for our four employees, but we use an accounting firm to pay the payroll taxes. I send them a report monthly that shows payroll details for each employee. They send me an email letting me know how much was debited from our account for the taxes. I was entering the amount they deducted in the payroll taxes expense fund, but today I realized that account was debited automatically when payroll is run. So, what account(s) should I be entering the amounts in?

Taxes are automatically deducted from the employees salary, and the employer taxes are transferred, to the tax liability accounts.

Normally there are separate liability accounts for FITW, Social Security, Medicare, State, and Local taxes. This should be where the Manual Check should be DEBITed from. So when you pay your Federal taxes the transaction entered in Accounts Payable using a Manual Check for EFT would look like this:

01-1110-000 Checking CREDIT 100.00
01-2217-000 Social Security DEBIT 45.00
01-2219-000 Medicate DEBIT 25.00
01-2215-000 FITW DEBIT 30.00


Does this help ??

[kimr@dcc]

That's exactly the info I was looking for. Thank you!!!