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Contractors - unlike many consultants, we understand your
special needs and your industry.
Let us help you maximize your investment in QuickBooks by
using:
special needs and your industry.
Let us help you maximize your investment in QuickBooks by
using:
- Job Costing Reports
- Vehicle Maintenance Records
- Workers' Compensation tracking
- Certified Payroll
- AIA Reports
| We support Sunburst Software Solutions. Click on the above logo to see the AWESOME software for Certified Payroll Solutions. Don't just take our word for it, read the review! Sunburst Software Solutions |
| Using QuickBooks with a payroll service for Job Costing |
Configuring QuickBooks for using a payroll service is a simple,
three-step process.
Once you’ve configured QuickBooks, you’ll need to follow one of
three methods for entering payroll data. The first method will give
you the most detail, but it requires the most data entry. The
second method requires a little less data entry, but doesn’t
provide full reports. If you don't need any reports, follow the third
method.
Configuring QuickBooks for Using a Payroll Service
To configure your file so that you can create payroll reports in
QuickBooks, follow these three steps:
Set up the following accounts in your chart of accounts.
Choose File • Preferences and scroll down to Payroll and
Employees. Set the Payroll Preferences to Payroll reports only.
Choose File • Payroll Info. Set the fields in the Payroll Info screen
to reflect your payroll expenses and payroll liabilities accounts.
Method 1: Produces Most Detailed Payroll Reports
If your payroll service creates paychecks drawn on your company’
s bank account you must enter each paycheck into your bank
account. The following method provides the most detailed reports.
Enter each paycheck using the Write Checks function. Fill out the
check with all the details of the paycheck as shown below. Choose
Activities • Write Checks.
Next, enter the payroll tax deposits using Write Checks.
If you enter your payroll transactions as shown in steps 1 and 2,
you can now generate the following detailed report.
TIP: To help prevent data entry mistakes, memorize payroll
transactions for employee and for the payroll tax deposit. Then,
each time you record payroll, use the memorized transactions. All
you need to do is change the figures, but each line is already filled
in by the memorized transaction.
Method 2: When Detailed Reports Aren’t Needed
If you don’t need detailed payroll reports and you don’t want to
enter all the details of each paycheck, you can use journal entries
to record the totals for all payroll expenses. Then, you can enter
the net pay only on each paycheck. This method saves time
during data entry, but you won’t be able to produce payroll reports
by employee.
Follow these steps.
Enter a journal entry to Debit gross wages and employer tax
expense. Enter each employee’s amounts on separate lines as
shown. Credit Net Pay Clearing for total net pay, and Credit
Payroll Liabilities for the combined employee and employer taxes.
To make the payroll reports show figures for each employee, enter
the employee name the name field as shown.
Enter each paycheck using the Write Checks function. Enter the
net paycheck only and code it to Net Pay Clearing. Choose
Activities • Write Checks.
Next, enter the payroll tax deposit as shown.
To check your work, verify that the Net Pay Clearing account has
a zero balance. It must always zero out after you finish entering
the payroll data.
Method 3: If No Payroll Reports are Required
If the payroll service uses their own account (i.e. not one of your
company bank accounts) for the paychecks, record your payroll
as follows.
Set up the following accounts in your chart of accounts. You don’t
need any payroll liability accounts if you use this method.
Choose File • Preferences and scroll down to Payroll and
Employees. Set the Payroll Preferences to No Payroll.
Record the payroll in QuickBooks by taking the figures from the
payroll reports and creating a journal entry as shown.
When You Need Detailed Job Cost Reports
TIP: If you need full job cost reports, including job costs of payroll
expenses, consider using QuickBooks Assisted payroll. Especially
if you have hourly employees who work on several jobs during a
pay period.
The reason is that by the time you enter all the necessary job-
costing information into QuickBooks, you will have done just about
as much work as if you used QuickBooks to do payroll yourself. So
why not just use QuickBooks to do your payroll? At least consider
using QuickBooks to "shadow" the payroll service.
If you have hourly employees who work on several jobs, use the
timesheets in QuickBooks Pro, and transfer their timesheets to the
paychecks. This function makes job-costing of payroll nearly
automatic.
three-step process.
Once you’ve configured QuickBooks, you’ll need to follow one of
three methods for entering payroll data. The first method will give
you the most detail, but it requires the most data entry. The
second method requires a little less data entry, but doesn’t
provide full reports. If you don't need any reports, follow the third
method.
Configuring QuickBooks for Using a Payroll Service
To configure your file so that you can create payroll reports in
QuickBooks, follow these three steps:
Set up the following accounts in your chart of accounts.
Choose File • Preferences and scroll down to Payroll and
Employees. Set the Payroll Preferences to Payroll reports only.
Choose File • Payroll Info. Set the fields in the Payroll Info screen
to reflect your payroll expenses and payroll liabilities accounts.
Method 1: Produces Most Detailed Payroll Reports
If your payroll service creates paychecks drawn on your company’
s bank account you must enter each paycheck into your bank
account. The following method provides the most detailed reports.
Enter each paycheck using the Write Checks function. Fill out the
check with all the details of the paycheck as shown below. Choose
Activities • Write Checks.
Next, enter the payroll tax deposits using Write Checks.
If you enter your payroll transactions as shown in steps 1 and 2,
you can now generate the following detailed report.
TIP: To help prevent data entry mistakes, memorize payroll
transactions for employee and for the payroll tax deposit. Then,
each time you record payroll, use the memorized transactions. All
you need to do is change the figures, but each line is already filled
in by the memorized transaction.
Method 2: When Detailed Reports Aren’t Needed
If you don’t need detailed payroll reports and you don’t want to
enter all the details of each paycheck, you can use journal entries
to record the totals for all payroll expenses. Then, you can enter
the net pay only on each paycheck. This method saves time
during data entry, but you won’t be able to produce payroll reports
by employee.
Follow these steps.
Enter a journal entry to Debit gross wages and employer tax
expense. Enter each employee’s amounts on separate lines as
shown. Credit Net Pay Clearing for total net pay, and Credit
Payroll Liabilities for the combined employee and employer taxes.
To make the payroll reports show figures for each employee, enter
the employee name the name field as shown.
Enter each paycheck using the Write Checks function. Enter the
net paycheck only and code it to Net Pay Clearing. Choose
Activities • Write Checks.
Next, enter the payroll tax deposit as shown.
To check your work, verify that the Net Pay Clearing account has
a zero balance. It must always zero out after you finish entering
the payroll data.
Method 3: If No Payroll Reports are Required
If the payroll service uses their own account (i.e. not one of your
company bank accounts) for the paychecks, record your payroll
as follows.
Set up the following accounts in your chart of accounts. You don’t
need any payroll liability accounts if you use this method.
Choose File • Preferences and scroll down to Payroll and
Employees. Set the Payroll Preferences to No Payroll.
Record the payroll in QuickBooks by taking the figures from the
payroll reports and creating a journal entry as shown.
When You Need Detailed Job Cost Reports
TIP: If you need full job cost reports, including job costs of payroll
expenses, consider using QuickBooks Assisted payroll. Especially
if you have hourly employees who work on several jobs during a
pay period.
The reason is that by the time you enter all the necessary job-
costing information into QuickBooks, you will have done just about
as much work as if you used QuickBooks to do payroll yourself. So
why not just use QuickBooks to do your payroll? At least consider
using QuickBooks to "shadow" the payroll service.
If you have hourly employees who work on several jobs, use the
timesheets in QuickBooks Pro, and transfer their timesheets to the
paychecks. This function makes job-costing of payroll nearly
automatic.