payments

[Polzelsbook]

I am really stuck... In 2020 my client had someone change the way their entries are done when paying Portico. The bill to Portico was paid from accounts payable screen then charged to Employer Contributions, Optional Retirement, optional life and optional vision which was deducted from the employee's paycheck. They stopped charging it to all accounts and it went all to employer contributions which is leaving us with an incorrect balance in that account and also the other accounts. How can I move those amounts so the money that is sitting in the optional benefit liabilities accounts get moved to the employer contributions account to offset that balance and properly apply the money deducted from paychecks?

[NeilZ]

I am really stuck... In 2020 my client had someone change the way their entries are done when paying Portico. The bill to Portico was paid from accounts payable screen then charged to Employer Contributions, Optional Retirement, optional life and optional vision which was deducted from the employee's paycheck. They stopped charging it to all accounts and it went all to employer contributions which is leaving us with an incorrect balance in that account and also the other accounts. How can I move those amounts so the money that is sitting in the optional benefit liabilities accounts get moved to the employer contributions account to offset that balance and properly apply the money deducted from paychecks?

I'm assuming that the employer contributions is an expense account?? In which case you would CREDIT the expense account, and DEBIT the liabilities by creating the transaction in Funds Accounting. Include a full explanation of why you're moving these around on the transaction.

[Polzelsbook]

So far I only find the liability account where the money goes when it's deducted from their check. They would create the portico receipt in the AP screen and charge it to the employer contribution account and then the 3 liability accounts where the money goes when it is deducted. I couldn't find an expense account for these?

[NeilZ]

So far I only find the liability account where the money goes when it's deducted from their check. They would create the portico receipt in the AP screen and charge it to the employer contribution account and then the 3 liability accounts where the money goes when it is deducted. I couldn't find an expense account for these?

The funds deducted from the employee obviously comes from their check, which is their salary expense. There should also be an Employer Contribution pay item to cover the employer's part of the coverage, and it should also go to the liability accounts. Not knowing how the coverage is setup there may need to be three separate employer contribution pay items. These are created under Payroll -> Item Descriptions. The expense account for these are setup in the Maintain Item Descriptions on each pay item there.

The system would then track the amounts that would need to be paid to the provider and, ideally if the system was setup properly, you would use the Payroll -> Create Accounts Payable Entries to pay any invoice. This function created the AP invoice using the amounts withheld from the employee along with the employer contributions. Thus there would be no need to do anything in AP other than perhaps adjust the amounts. However, the amounts deducted and contributed in Payroll should equal the monthly invoice, so all that would need to be done in AP is print the check.

Can you see where I'm going here?