Hi Hector, im a district manager with ADP . First, thank you so much for educating our clients through your channel. I want to share with you our general ledger mapping will help take off all of the manual entries. It automatically does it once you have it all mapped.
Question: Gross wages: 78k Taxes employee withheld 1900 Taxes employee withheld 1200 Adp pay by pay 1300 (Bank shows 78k, 3.1k and 1.3k removed; I broke down the employee withheld tax and employer portion) How would you do this JE?
Thank you. Why do you have to put it in an expense account first? Previously I set up my J/E by debiting the checking account and crediting the other entires. Have I been doing it wrong? Thank you for your response in advance.
Hi Hector! Thanks for the incredible content! How do I input ADP processing fees? Does it make sense to put it under payroll expense as fees or should I perhaps put it under an other business expense and label it ADP Processing Fees?
hi Hector, if you already have the bank transaction in qbo that was imported from the bank (as a lump sum), can I just split it instead of creating a new journal? if I need to create a new journal how do I avoid duplicates?
Hi Hector - thank you for your video, it was extremely helpful in understanding the process of recording payroll in QB. I do have a follow up question, I am recording the ADP fee as an expense and not including it in the journal entry, would this be the correct way to record the fee?
Hi Hector ,Thank you for your video, it was extremely helpful in understanding the process of recording payroll in QB. How can i get a copy of these breakdown's Sheets (JL ) with reports
Hello and thank you for your helpful videos. Question: new to qbo and not sure on how to manually enter payroll for an s-corp where there are only 2 people (president & secretary), adp is the payroll co. President & secretary get w-2's. Adp filed all pertinent docs to fed and state on Corp's behalf. Neither qbo, bank & Adp are linked. There's no direct deposit. Adp takes money out of corp account to pay for taxes and for their fees and generates paper checks. What would be the difference from what you've explained which is for direct deposit to paper checks? And do chart of accounts has to be created to specifically show the corp's officers (president & secretary) in the payroll expense?
Hi Hector. Jorge here. I have been splitting each lumpsum or the money that is payout from the bank account(ADP) and when I split each transaction i see the ADP payroll summary report that shows me the payroll expenses and the Liabilities, so I entered everything like that, but I noticed that the payroll liabilities accounts are negative amounts in the balance sheet. I was thinking that I can do a journal entry to zero out the payroll liabilities accounts in the balance sheet because those liabilities were already paid. How would i do that.... ?. Can i do a journal entry , to debit the liabilities and credit gross wages ?.
Hello Hector, When I'm reconciling and I have employees that cashed their check the following month do i still select the lumpsum amount and let there be an adjustment? or what is the correct way to do this since I didn't do a breakdown of employee checks with numbers... I'm stuck, everything else I understand completely.
Hi Hector, how would you enter the adp peo payroll. We do not have any liabilities as they deduct a full amount Taxes w/c etc is all included. Is technically outsourcing our employees. Thank you.
@@HectorGarciaCPA thank you 🙏. What do i do with the timecards when i pay employees? I enter the time to each employee against each job and then i generate their paychecks with their deductions so i end up with liabilities.
Hi Hector- Are you familiar with Payroll Relief? There seems to be a way to integrate it with QBO but I'm a little lost when setting up the "General Ledger" on Payroll Relief. My guess is that it is matched with the corresponding QBO category (i.e. 6502 Indirect labor: Payroll tax) but I do not have numbers assigned to my chart of accounts like how you do, it would just say payroll tax.
Hi Hector totally out of the subject your on, but I have a question! As a owner wanting to be on payroll ( without works comp of course) , how would you go about paying yourself as a owner can it be done as an employee? And how would you log in and clear line haul he does? ( we are a small trucking company and I have the owner that does line hauls but I don’t know how to go about paying and clearing up line hauls he’s done in the past being that we would do owners withdraw but now he’s wanted to be on payroll! Any idea how to go about that ?? Hopefully you understood me 😬 help please
If you are an owner and do not have payroll setup.. just write yourself a distribution check. But if this is an S-Corp; there should be some payroll done for the owner
We are a LLC , is it done the same?? How about clearing the bills that were created before setting him up on payroll?? ( the line hauls he did ). Also would those be entered in as an income ??
@@gtgigi69 Not quite. You need to determine if your LLC has declared to the IRS to be treated as an S-Corp. If not, then you LLC will be recognized and taxed by the IRS as if it were a partnership; assuming you have multiple owners. Your W9 form may be the easiest way to determine this. S-Corps are special in that, as Hector mentioned, require the owner to take on a reasonable payroll. Anything after that can be a draw.
How does this work when the employee has not cashed their check? Or if the check was cashed outside of the closing period. I follow these steps but then some of the checks for July's payroll were cashed in August so the outsourced payroll amount isn't the correct amount for July's ending date. It is really throwing me off.
My advise as a district manager with ADP is request adp checks. These all get debited once from the business acct . As the employees cash them they get debited now from ADPs bank
HEctor thank you for this video. As a matter of fact , i have client that put all the payroll into a liability account instead of the expense. When doing the journal entry i have to credit in the journal entry that liability account correct ?
Hi Hector, im a district manager with ADP . First, thank you so much for educating our clients through your channel. I want to share with you our general ledger mapping will help take off all of the manual entries. It automatically does it once you have it all mapped.
Thank you! I was wondering about this. :)
Hi. My client is on ADP and I have ADP Accountant Connect. Can I connect with someone from ADP that would help me with account mapping?
Question:
Gross wages: 78k
Taxes employee withheld 1900
Taxes employee withheld 1200
Adp pay by pay 1300
(Bank shows 78k, 3.1k and 1.3k removed; I broke down the employee withheld tax and employer portion)
How would you do this JE?
Does your "payroll tax" represent ONLY employer contributions? If yes, where do the employee contributions go? Wage Expense?
Yes.. employees taxes is wages
Thank you. Why do you have to put it in an expense account first? Previously I set up my J/E by debiting the checking account and crediting the other entires. Have I been doing it wrong? Thank you for your response in advance.
No… the order doesn’t matter
Hi Hector! Thanks for the incredible content! How do I input ADP processing fees? Does it make sense to put it under payroll expense as fees or should I perhaps put it under an other business expense and label it ADP Processing Fees?
It would be a payroll expense that you can name processing fees.
@@christineweaver4835 Thanks! :)
@@christineweaver4835 thanks so much!
hi Hector, if you already have the bank transaction in qbo that was imported from the bank (as a lump sum), can I just split it instead of creating a new journal? if I need to create a new journal how do I avoid duplicates?
If is an Expense or Check, yes… if is a Transfer no
I bought a car and finance it.
I bought a Gap insurance for $295.00, how do i make the journal entry on my books.
Hi Hector - thank you for your video, it was extremely helpful in understanding the process of recording payroll in QB. I do have a follow up question, I am recording the ADP fee as an expense and not including it in the journal entry, would this be the correct way to record the fee?
Thats ok
Hi Sherri, thank GOD you asked this! I have been wondering how to do this myself....
Hello! Can I ask what should I do if im reconciling an ADP clearing account but there's difference? Please help, thank you!
Hi Hector ,Thank you for your video, it was extremely helpful in understanding the process of recording payroll in QB. How can i get a copy of these breakdown's Sheets (JL ) with reports
You need to ask ADP
Hector, how do you handle a "grossed up" ADP entry? What's the adjustment?
I don’t know what that means. I would say that the entries I explained in here would all be the same. Regardless of how the entry is.
If ADP pays our taxes is a clearing account necessary?
No
Can I do this after the bank account has been reconciled?
Yeah; but you cant affect the bank account in the journal
Hello and thank you for your helpful videos. Question: new to qbo and not sure on how to manually enter payroll for an s-corp where there are only 2 people (president & secretary), adp is the payroll co. President & secretary get w-2's. Adp filed all pertinent docs to fed and state on Corp's behalf. Neither qbo, bank & Adp are linked. There's no direct deposit. Adp takes money out of corp account to pay for taxes and for their fees and generates paper checks. What would be the difference from what you've explained which is for direct deposit to paper checks? And do chart of accounts has to be created to specifically show the corp's officers (president & secretary) in the payroll expense?
Hard to explain with so many specific things. But it would be the same essentially
Hi,
Can you do a video if you have linked ADP to QBs online?
I dont have one now.
@@HectorGarciaCPAwould you recommend doing the manual JE as shown on this video or link ADP to QBs?
How do I map employee loan and how is that recorded on the JE?
Into a current Asset
Very precise and easy to understand, great job Mr Garcia !!!
:)
Hi Hector. Jorge here. I have been splitting each lumpsum or the money that is payout from the bank account(ADP) and when I split each transaction i see the ADP payroll summary report that shows me the payroll expenses and the Liabilities, so I entered everything like that, but I noticed that the payroll liabilities accounts are negative amounts in the balance sheet. I was thinking that I can do a journal entry to zero out the payroll liabilities accounts in the balance sheet because those liabilities were already paid. How would i do that.... ?. Can i do a journal entry , to debit the liabilities and credit gross wages ?.
Probably gross wages, yes
@@HectorGarciaCPA Thanks a lot Hector as always you are so great at what you do!.
Hello Hector,
When I'm reconciling and I have employees that cashed their check the following month do i still select the lumpsum amount and let there be an adjustment? or what is the correct way to do this since I didn't do a breakdown of employee checks with numbers... I'm stuck, everything else I understand completely.
Its hard to tell without looking at how the data came in
Hello Hector!
I can not find answer nowhere to a question “how to categorize payroll tax penalty?”. I use 3rd party payroll company… Please, help😢
I would say its an expense
I noticed CPAs do journal entries for payroll but many bookkeepers don’t like that…: I wonder why.
My boss wants to write a check he thinks journal entries are for correcting errors
Hi Hector, how would you enter the adp peo payroll. We do not have any liabilities as they deduct a full amount Taxes w/c etc is all included. Is technically outsourcing our employees. Thank you.
All goes to “payroll expense”
@@HectorGarciaCPA thank you 🙏. What do i do with the timecards when i pay employees? I enter the time to each employee against each job and then i generate their paychecks with their deductions so i end up with liabilities.
Hi Hector- Are you familiar with Payroll Relief? There seems to be a way to integrate it with QBO but I'm a little lost when setting up the "General Ledger" on Payroll Relief. My guess is that it is matched with the corresponding QBO category (i.e. 6502 Indirect labor: Payroll tax) but I do not have numbers assigned to my chart of accounts like how you do, it would just say payroll tax.
I don’t use them.
Hi Hector totally out of the subject your on, but I have a question! As a owner wanting to be on payroll ( without works comp of course) , how would you go about paying yourself as a owner can it be done as an employee? And how would you log in and clear line haul he does? ( we are a small trucking company and I have the owner that does line hauls but I don’t know how to go about paying and clearing up line hauls he’s done in the past being that we would do owners withdraw but now he’s wanted to be on payroll! Any idea how to go about that ?? Hopefully you understood me 😬 help please
If you are an owner and do not have payroll setup.. just write yourself a distribution check.
But if this is an S-Corp; there should be some payroll done for the owner
We are a LLC , is it done the same?? How about clearing the bills that were created before setting him up on payroll?? ( the line hauls he did ). Also would those be entered in as an income ??
@@gtgigi69 Not quite. You need to determine if your LLC has declared to the IRS to be treated as an S-Corp. If not, then you LLC will be recognized and taxed by the IRS as if it were a partnership; assuming you have multiple owners. Your W9 form may be the easiest way to determine this.
S-Corps are special in that, as Hector mentioned, require the owner to take on a reasonable payroll. Anything after that can be a draw.
@@Wookierabbit no just one owner! All this is so confusing lol I’m so new to this my bookkeeper quit on me and left me high and dry ....
@@gtgigi69 Ah, then I am sorry that was the case for you. May you find another bookkeeper that'll serve you well.
How does this work when the employee has not cashed their check? Or if the check was cashed outside of the closing period. I follow these steps but then some of the checks for July's payroll were cashed in August so the outsourced payroll amount isn't the correct amount for July's ending date. It is really throwing me off.
Did you ever figure this out?
My advise as a district manager with ADP is request adp checks. These all get debited once from the business acct . As the employees cash them they get debited now from ADPs bank
Hi hector why not use the general ledger link from ADP to record the payroll
Thats an option as well
HEctor thank you for this video. As a matter of fact , i have client that put all the payroll into a liability account instead of the expense. When doing the journal entry i have to credit in the journal entry that liability account correct ?
As long as it clears out to zero at the end, is fine. But with ADP there is not liability, everything is paid out.
@@HectorGarciaCPA Thaks a lot ....
Hi Mr Hector,
Thanks Hector.