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Outsourcing Payroll

If you use QuickBooks to process your payroll, all the payroll expenses and payroll tax liabilities are already entered in your company's financial records. If, instead, you hire an outside service to produce your payroll, the payroll expense and the liability amounts must be entered in your QuickBooks file.

Record Payroll Expense and Payroll Liabilities

Select Make General Journal Entries from the Company menu.

Enter the date of the payroll.

Enter the name of the payroll expense account.

Enter as a debit the amount of the gross payroll (total salaries and wages, before being reduced by tax withholdings).

Enter one of your payroll tax liability accounts—for example, enter Federal Taxes.

Enter as a credit the amount of tax withheld from the employee for this type of payroll tax.

Repeat steps 5 and 6 for all your payroll tax liabilities affected by this payroll.

Enter the cash account that will be affected by this payroll.

Enter as a credit the net amount of the payroll.

Click one of the save options.


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