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3 Replies Latest reply: Apr 10, 2008 3:42 PM by LUCKIEST RSS

Quickbooks and Memorized Lists

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Our company has a payroll company do our payroll twice a month and each pay period I enter the payroll figures into Quickbooks. An accountant set up a "Memorized List" for this purpose. It looks like this:

Debit

Salaries & Wages (Gross)
Payroll Taxes: Federal Unemployment (FUTA) (Employer pays 100%)
Payroll Taxes: Social Security/Medicare (FICA) (Employer pays 50%)
Payroll Taxes: State Unemployment (SUI) (Employer pays 100%)
Payroll Service Charge (Employer pays 100%)

Credit

Net direct deposits
Taxes
Payroll Service Charge (Employer pays 100%)
401K (Employee pays 100%)
Health Insurance (Employee pays 50%)*

Health insurance bill is paid every month by employer, so payroll company does not have to pay the bill.

The problem with using the "Memorized List" is that after the numbers have been entered into the "memorized list" (and both sides equal), it comes out $598.56 more than the cash requirements figure for the payroll company. The $598.56 is the health insurance that the payroll company takes out of each employee's check (employer pays the other half).

(1) Should I be making two sets of payroll journal entries? One set to record employee salary and deductions; and one set _to record employer payroll expenses_? If so, am I to assume that Quickbooks is doing their "behind the scenes" accounting creating the second journal entry? If not, should I be making a second journal entry? Should I also be making a separate journal entry for the payroll service charge since it has nothing to do with taxes, or can that be included in the second journal entry to record employer payroll expenses?

(2) If I continue using the "Memorized List," shouldn't the $598.56 (above) be offset?

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