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Tutorial #QB9-21: Outsourcing Payroll

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Mar 4th 2011
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Intro: If you use QuickBooks to prepare your payroll, all of the payroll and payroll tax liability amounts are automatically entered properly in your QuickBooks accounts. However, if you use an outside service to process your payroll, you probably will find that you need to record the payroll information in your accounts yourself. This tutorial explains how to enter payroll information that has been prepared by an outside services.

Download the audio file HERE

Step 1: Open General Journal
Choose Company, Make General Journal Entries from the QuickBooks menu.

Step 2: Enter Date Information
In the Date field, enter the date of the payroll.

Step 3: Enter Journal Entry Number
In the Entry Number field, QuickBooks assigns a journal entry number for you - the next consecutive number. You can override this number if you like.

Step 4: Enter Accounts and Amounts
In the Account area, enter the name of your payroll expense account. Enter the gross payroll amount in the Debit column. The Memo column should include q brief statement indicating the date of the payroll. This memo will automatically carry to all lines in this journal entry.

On the next line, enter your Payroll Tax account, and then enter the amount of employer's share of payroll tax in the Debit column.

On the next line in the Account area, enter the bank account used to make the payroll payment. QuickBooks calculates the net amount paid for this payroll in the Credit column. Verify that this amount is correct.

Step 5: Save Your Entry
Click a Save button to save the information you have placed in this Journal Entry.

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