USA Help with payroll transaction


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Hello. I use QB online and I am trying to account for payroll taxes paid. We have 2 employees that are paid weekly. I account for the payroll taxes each week and place that into the taxes payable account. I need help making the proper entries now that the taxes have been paid. The transaction downloaded from the bank so I will peg that to the tax EXPENSE account now that it is paid. My issue is if I do a JE to move the money from the payable account I now have 2 entries into the EXPENSE account. What am I missing?
 
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kirby

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If the bank made the payroll tax payment then that portion of the overall payment is to be recorded as debit to payroll taxes payable.
 

Werner Reisacher

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Here is an example.
Gross Payroll $ 1000 Debit Payroll P&L: $ 1000
Employee FICA $ 75 Credit FICA Payable: $ 75 + 75 = $ 150 ( add company FICA)
IRS withholding $ 100 Credit IRS Payable $ 100
Net paycheck $ 825 Credit Cash $ 825
Company FICA $ 75 Debit FiCA Expenses $ 75
 
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If the bank made the payroll tax payment then that portion of the overall payment is to be recorded as debit to payroll taxes payable.
I still think I'm missing something. Won't that just offset the payable account and clear the balance sheet? How does that make it hit the P&L?
 
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Here is an example.
Gross Payroll $ 1000 Debit Payroll P&L: $ 1000
Employee FICA $ 75 Credit FICA Payable: $ 75 + 75 = $ 150 ( add company FICA)
IRS withholding $ 100 Credit IRS Payable $ 100
Net paycheck $ 825 Credit Cash $ 825
Company FICA $ 75 Debit FiCA Expenses $ 75
This part I got. Now that we have paid the taxes for the month I am trying to move the money out of the payables account (balance sheet) to the paid account on the P&L. I tried to make a JE between taxes payable and the expense account to clear out the payable but then when I end up with a double posting in the expense account because the I have to post the bank transaction to the expense account too.
 
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kirby

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I think to solve this you should post here all your actual entries. If you want to disguise the amounts , modify each amount by the same factor. For example if there is a $200 debit and a $300 credit multiply both by say 5 to disguise amounts while keeping entry in balance.
Or send as private message to me or Werner or both. Log in to forum and click on envelope icon at top.
 
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