USA Intercompany Accounting for Payroll


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Hello, I have a client who falls under the common paymaster rule. But I am unsure as to how to record these. I've been told to do a journal entry, and told to just enter it in the register. The client is using QuickBooks Online. They do not want these transactions to show in their sales income.
 
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kirby

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Usually an intercompany payroll is recorded as including debits to wages and payroll tax expense with a credit entry to intercompany payable to the company thst paid the wages. Really not sure what you are asking here.
 
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Thank you for responding. I figured this was just a regular transaction. You invoice the sub-company and then receive the payment, just like any other invoice you may create. I guess my confusion is being told to do journal entries or just enter it in the register didn't make sense to me. Thank you.
 

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