How To Download Paychex Into Quickbooks Pro 2017

Learn how to create journal entries for paychecks yous create outside of QuickBooks.

If yous use QuickBooks for accounting and another service to run payroll, you lot still need to keep track of those paychecks in QuickBooks. We call paychecks made exterior of QuickBooks with services similar ADP or Paychex third-party paychecks.

Some payroll services permit you import paycheck information straight into QuickBooks. If your service doesn't have this characteristic, we'll show yous how to manually track these payments every bit periodical entries. This keeps your payroll and business relationship information all in one identify.

Important: Manually entering payroll paychecks into QuickBooks Online tracks your payment totals. Yet, it doesn't create the data yous'll need for your employee'south W-2s. You'll need to work directly with your payroll service to get your year-finish forms.

Go along in listen, periodical entries crave an understanding of debits and credits. If you have specific questions about your Chart of Accounts, reach out to your accountant or detect a ProAdvisor .

Step 1: Create manual tracking accounts

If you oasis't already, follow the steps to create new accounts in your Chart of Accounts to rails your payroll liabilities and expenses.

Create these expense accounts. SelectExpense equally the account blazon:

Payroll Expenses: Wages
Payroll Expenses: Taxes

Create these liability accounts. SelectLiabilities as the business relationship type:

Payroll Liabilities: Federal Taxes (941/944)
Payroll Liabilities: Federal Unemployment (940)
Payroll Liabilities: [Country] SUI/ETT
Payroll Liabilities: [State] PIT/SDI

Notation: These accounts cover nearly common payroll tax situations. You may need to create boosted accounts for taxes specific to your state or locality.

Step two: Enter the payroll paychecks into QuickBooks Online

Subsequently yous pay your employees outside of QuickBooks, create a periodical entry.

Get your employees' payroll pay stubs or a payroll report from your payroll service.
Select + New.
Select Periodical Entry.
Under the Periodical engagement, enter the paycheck engagement.
If yous want to track the paycheck number, enter information technology in the Journal no. field.

Use the info from your payroll report to create the journal entry. If you paid multiple employees for the pay menstruum, you can combine all of their paycheck totals into i periodical entry. You can besides create separate periodical entries for each employee if you need to intermission out the details.

Add gross wages

Select Payroll Expenses: Wagesfor the account.
Enter the amount equally a debit.

Add employer payroll taxes

Select Payroll Expenses: Taxes for the account.
Enter the amount as a debit.

Note: You lot can combine the following taxes into one debit, or add each tax detail as carve up debits: Social Security Employer, FUTA Employer, Medicare Employer, State Job training taxes and State unemployment insurance.

Add taxes paid towards 941 or 944 taxes

Select Payroll Liabilities: Federal Taxes (941/944) for the account.
Enter the amount as a credit.

Note: Yous can combine the following taxes into i debit, or add each tax item as separate debits: Federal Income taxes, Social Security Employee, Social Security for Employer, Medicare for Employee, and Medicare for Employer

Add together country unemployment insurance taxes.

Select the Payroll Liabilities: [State] SUI/ETT Liability for the account.
Enter the amount as a credit.

Annotation: You tin combine the following taxes into one debit, or add each revenue enhancement item as split up debits: State Unemployment Insurance and State Employment Preparation Tax

Add state income taxes

Select Payroll Liabilities: [State] PIT/SDI for the account.
Enter the amount equally a credit.

Note: You can combine the following taxes into one debit, or add each taxation item equally separate debits: Country Personal Income Revenue enhancement and State Disability Insurance.

Add together federal unemployment taxes (FUTA).

Select Payroll Liabilities: Federal Unemployment (940) for the account.
Enter the corporeality equally a credit.

Add net wages

Select the checking account you're paying your employees from.
Instead of combining them, enter each individual paycheck on dissever lines. Enter the amounts ascredits.

When yous're washed entering the debits and credits, select Save.

Follow an example paycheck

Here's an case of entering third-political party paychecks issued on September 1 for 2 employees in California.

John received a gross paycheck of $1000.00. Their net pay is $751.34.
Jane received a gross paycheck of $500.00. Their cyberspace pay is $401.35.

Their combined taxes and other calculations for both checks are:

$ 93.00 For Social Security for Employer
$ 9.00 for FUTA Employer
$ 21.75 For Medicare Employer
$one.50 CA ETT
$ 75.00 CA SUI
$ 171.78 for Federal Income Tax
$ 93.00 For Social Security for Employee
$ 21.75 For Medicare Employee
$ 45.78 Land Personal Income Tax
$xv.00 State Disability Insurance

To create the periodical entry, you would enter these combined totals as debits:

Payroll Expenses: Wages: $1500.00
- $ 1500.00 Gross paycheck amount
Payroll Expenses: Taxes: $200.25
- $ 93.00 for Social Security Employer
- $ 9.00 for FUTA Employer
- $ 21.75 for Medicare Employer
- $ 1.50 CA ETT
- $ 75.00 CA SUI

Then you would enter these combined totals as credits:

Payroll Liabilities: Federal Taxes (941/944): $401.28
- $ 171.78 for Federal Income Tax
- $ 93.00 for Social Security for Employee
- $ 21.75 for Medicare Employee
- $ 93.00 for Social Security for Employer
- $ 21.75 for Medicare Employer
Payroll Liabilities: [Country] SUI/ETT: $76.50
- $ 75.00 for Country Unemployment Insurance
- $ i.50 for Land Employment Training Revenue enhancement
Payroll Liabilities: [Land] PIT/SDI: $45.78
- $45.78 Country Personal Income Taxation
- $fifteen.00 State Inability Insurance
Payroll Liabilities: Federal Unemployment (940): $9.00
- $ 9.00 for FUTA Employer
Then list out each cyberspace paycheck individually as credits. It's helpful to include a description and proper noun for each bank check.
John's internet pay is $751.34.
Jane's net pay is $401.35.

Manually