Re: [SL] Payroll

[<in...@ca...>]

Here what we do (US):

---Set up employee as vendor
---- AP transaction for employee:
$Gross pay		Wages and Salaries (Exp acct)
-$Fed.Inc.W/hold	Fed.Inc.W/hold (Liability acct)
-$Employee FICA	Employee FICA (Liability acct)
-$State Inc.W/hold	State Inc.W/hold (Liability acct)
----------------------------
$Total (Net pay)	Accrued Wages (Liability acct)

--- Set  up Payroll service as vendor (or tax entity) 
--- AP transaction for Payroll Service (similar for tax entity)
$Fed.Inc.W/hold	Fed.Inc.W/hold (Liability acct)
$Employee FICA	Employee FICA (Liability acct)
$Employer FICA		Employer FICA (Exp acct)
$FUTA			FUTA (Exp acct)
$SUTA			SUTA (Exp acct)
$State Inc.W/hold	State Inc.W/hold (Liability acct)
----------------------------
$Total			Account payable (Liability acct)

--- Payments per Cash menu

Hope that helps.

On Friday 24 February 2006 12:57 pm, Stuart Luppescu wrote:
> Well, I'm about to do payroll for the first time. We don't
> have that many employees so I can do the withholding
> calculations in a spreadsheet without trouble. But I don't
> know what to do after that. Do I make the employees vendors,
> and put their pay in AP transactions? This looks likely, since
> account 5410 appears in the account pull-down. Do I also make
> the government a vendor for the purpose of paying withholding?
> Do I just do a cash transfer from the checking account to 2110
> Accrued Income Tax - Federal, and 2120 Accrued Income Tax -
> State, and then pay the AP from these accounts when the tax
> has to be paid at the end of the quarter?
>
> Thanks in advance for any help.