Generating a check for Payroll Taxes

[karinwatson]

I am using v9, and I have spent quite a bit of time setting up the accounting module and have hit another brick wall. On my Income and Expense Statement report, the FICA (Other Staff) line is double the amount it should be. Could someone please call, email or respond to this forum question - When processing a check to pay Federal and FICA taxes that is taken to the bank, what accounts are credited and debited? Somehow my expense accounts - Social Security and Medicare - are being doubled. I have checked the Maintain Item Descriptions and Maintain Employee Pay Items and everything looks correct according to the book for v9, pages 290-293. My work phone number is 864-231-0043 (between 9-12). My email is karin_clearview@bellsouth.net. Any help would be greatly appreciated.

Karin Watson
Ministry Assistant
Clearview Baptist Church
Anderson, SC

[tborgal]

When you cut your payroll check your Fed. Tax, FICA and Meicare should be debiting the appropriate expense account and crediting a Federal Withholding Liability account. I'm not sure if this is the standard setup but mine is 01-2200. When you cut the check for the deposit to the bank you credit the checking account and debit the liability account, again in my case 01-2200. It would seem that you are probably debiting the expense accounts. This would explain why the accounts are doubling. If you look at the Liability account you may find it to be growing as well. This account should be zero after you make the payment.

Hope this helps.