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Thread: No Payroll with QuickBooks - how to record manually

  1. #1
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    No Payroll with QuickBooks - how to record manually

    We get our QBs from ABSA and, at the moment, there is no Payroll module available with such. ABSA said this is because Intuit has not released a RSA version and they do not endorse any other provider.

    SO, my question is: what are the entries for recording payroll manually in QBs using a general journal?

    I would also like each employee to have a 'Supplier' account so we can keep track of who got paid what and what was deducted from their salaries. We are a small business so all we have to collect/pay is PAYE and UIF.

    I am getting very confused as a) my accounting is rusty and b) the (ex)bookkeeper made a right mess of the chart of accounts. She no longer works for us

    I have attached a spreadsheet of what I think...but I'm not sure which accounts to use in QBs as there are various accounts in the Chart of Accounts...and the 'Payroll Liabilities - Other Current Assets' account is EMPTY...there are no transactions in there at all...

    Thanks in advance to anyone who can help!
    Attached Files Attached Files

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    Gold Member Martinco's Avatar
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    Why do you not use a "cheaper payroll program" like Mirror Payroll ?

    That does it all automatically and the yearly license fee is not so high like e.g. Pastel Payroll
    Really works like a dream.............a pay run for 10 workers takes less that 10 minutes and you are sure the tax etc. is correct.

    If you would like to look at it go to www.mirrorsa.co.za
    If I remember correctly it gives you a trial period.
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    Site Caretaker Dave A's Avatar
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    Marce, I found setting up Staff accounts (that zone where you select Customer / Supplier / Employee / Other) a bit clumsy - but then I'm using Quickbooks 2003; it might have improved since.

    Here's how I deal with the various staff accounts.

    I use sub-accounts under Salaries and wages (Expense account) to track individual remuneration. Each member of staff has a sub-account.

    I also use sub-accounts under Payroll Liabilities (Other current liability) for PAYE, UIF and SDL.

    I've also set up an Employee Advances (Other current asset) account and have a sub-account for each employee who ever has this sort of transaction going on.

    If a member of staff buys anything from the business, I open a normal customer account and invoice them through that, then pay the account to their employee advance account straight away (which neatly takes care of VAT issues on that sort of thing too).

    Here's a simple sample expense entry that I do using the bank account register

    Click image for larger version. 

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    You'll note that you can but negative values in the split account area and it will allocate it to the credit column in that account automatically.

    At the end of the month I work out the company contribution for UIF and SDL and process that as a journal entry. Again, the expense accounts for company contributions are sub-accounts, this time under a payroll expenses account.

    On a payroll module for Quickbooks, I saw one available to purchase as a plug-in a year or two ago. I don't know if they've dropped it since.
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member wynn's Avatar
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    Also check out www.xero.com
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    Platinum Member sterne.law@gmail.com's Avatar
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    May look over complicated to use control accounts, but this means you are always closing off or balancing - no running around at year end. From a quick books perspective you can memorise the journal, so each month merely edit figures. I fthe figures are the same then you can automate the journal entry. The payments elements need not and should not be be a journal - cheques, eft windows will be used.
    I attached the T accounts in a worksheet.(which may be more clear, format when pasting might go wonky)

    EXPENSES TO COMPANY
    DEBIT SALARY 5000
    CREDIT SALARY CONTROL 5000

    DEBIT PAYROLL BURDEN 50
    CREDIT UIF CONTROL 50
    TOTAL 5050 5050
    CONTROL ACCOUNTS
    DEBIT SALARY CONTROL 500
    CREDIT PAYE CONTROL 500

    DEBIT SAL CONTROL 50
    CREDIT UIF CONTROL 50
    TOTAL 550 550
    PAYMENTS
    DEBIT PAYE CONTROL 500
    CREDIT BANK 500

    DEBIT UIF CONTROL 100
    CREDIT BANK 100

    DEBIT SALARY CONTROL 4450
    CREDIT BANK 4450
    TOTAL 5050 5050
    Attached Files Attached Files
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Hey, guys,

    Thanks so much for all your replies. It has been manic here so my focus suddenly shifted from payroll postings to legal matters (collecting debt from our defaulters!) and now the implications of the impending implementation of the new Consumer Protection Act. It's been crazy!

    I've had a look at the software suggested...Mirror Payroll looks very indepth and not like something our small company needs (or could actually handle due to it's complexity !). With Xero, it says this re payroll: "At the moment there are no solutions that match your criteria." =/ Nevertheless, we aren't really in a position to be buying more software.

    As for control accounts, I agree with using these but I am processing old transactions at the moment so it may be unnecessary for now.

    So, I'll give Dave's solution a whirl...once I actually manage to get back to processing the purchase ledger :P !!!

    Thanks so much, all, and sorry I took SO long to respond!!!

    =)

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    Platinum Member sterne.law@gmail.com's Avatar
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    It can probably be simplified as follows:
    Debit: Bank R5000
    Debit: Payroll Burden(UIF) R50
    Credit: Bank R4950( the salary paid to employee less UIF)
    Credit: Bank R100 (cheque made out to UIF)
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Go to the Plus Sign Icon and select Journal Entry
    Under Date, select the paycheck(s) date.
    (Optional) Input Entry # for journal entry.
    Debit and Credit accounts:
    a. Debit expense account used to track gross wages. ($4,055.00)
    b. Debit expense account used to track Social Security. ($251.41)
    c. Debit expense account used to track Federal Unemployment. ($32.44)
    d. Debit expense account used to track Medicare. ($58.80)
    e. Debit expense account for State taxes. ($137.87)
    f. Debit expense account for Paychex Processing Fee. ($45.00)
    g. Credit Bank account payroll is deducted from. ($4580.52)

    Note: To make entry easier next time, the next two steps go over how to save the transaction. If you only wish to do the transaction once, or have the QuickBooks Online Basic version, please skip these steps.

    Click Make Recurring.
    Enter a memorable Template Name and set Template Type to Unscheduled; click Save Template.
    Click Save.

    Note: To access this template depending on the interface you see go to the Gear Icon and select Recurring Transactions. Make sure to change amounts and/or accounts as necessary.
    Last edited by Dave A; 09-Jun-16 at 06:57 PM. Reason: removed unhelpful link

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    Quote Originally Posted by Marce View Post
    We get our QBs from ABSA and, at the moment, there is no Payroll module available with such. ABSA said this is because Intuit has not released a RSA version and they do not endorse any other provider.
    Hi Marce, someone is being less than truthful
    http://www.quickbooks.co.za/products...quick-payroll/

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Andromeda View Post
    Hi Marce, someone is being less than truthful
    It was true in February 2011 when the post was made

    If you want to see something suspect, take a look at the homepage of the poster of post 8. That's supposed to be a QuickBooks help website?
    The trouble with opportunity is it normally comes dressed up as work.

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