ADP QuickBooks Desktop Manual Payroll
Hello,
I am looking for someone to assist me in recording my ADP payroll in QuickBooks Desktop. My accountant at the time had shown me how to put it in, but I'm starting to question whether or not it is correct. Below are the accounts that I use:
Other Salaries and Wages
Fringe - FICA/Medicare
Fringe - SEP IRA
Fringe - Unemployment/WC
Payroll Liability Benefits
Payroll Liability
What made me start to question was that the accountant had set up a Payroll Liability Account but I've noticed I've never used that account in the many months of recording the entries so to me, something is off. Below is how I put in the entries - I enter them as a check and then post to the payroll account.
Salaries:
Other Salaries & Wages 12,982.10 (Gross)
Fringe - FICA/Medicare -2,931.16
Fringe - SEP/IRA -287.55
Payroll Liability Benefits -330.84
Withholdings:
Fringe - FICA/Medicare 3,902.28
When the Unemployment/WC adjustment is owed, I will make a separate line item in the Withholdings posting.
Fringe - FICA/Medicare 3,402.28
Fringe - Unemployment/WC 500
I think what is confusing is, is how to make sure I'm recording what the employee owes and what the employer owes correctly. For an example, the $3,902.28 consists of not only the employer liability (FICA/Medicare) but also the employer contribution for the SEP IRA. Shouldn't those be separated and not under FICA/Medicare? Where could I use the Payroll Liability account? Then again maybe the accountant had a method to her madness and this all balances out some how. Not sure. I just know that with payroll liability benefits, we have deductions that come out of our pay and then we pay the vendor. We have FICA/Medicare that the employee and employer owes. For SEP IRA, we have employee contribution and then employer contribution and then we pay the vendor. Should employee contributions be under a payroll liability and the employer contributions be under an expense? Any knowledge is appreciated, hopefully this makes sense.