[Question] No Payroll with QuickBooks - how to record manually

[Marce]

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!

[Martinco]

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.

[Dave A]

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



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.

[wynn]

Also check out www.xero.com

[sterne.law@gmail.com]

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

[Marce]

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!!!

=)

[sterne.law@gmail.com]

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)

[quickbooks2016]

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.

[Andromeda]

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-software/quick-payroll/

[Dave A]

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?

[Andromeda]

It was true in February 2011 when the post was made

Oops and crapola!