Chapter 8-Payroll Setup.pptx - Computerized Accounting with...

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Computerized Accounting withQuickBooks 2018
Chapter8Payroll SetupCustomizing Payroll Setup© Paradigm Publishing, Inc.2
ObjectivesReview payroll terminologyActivate the payroll preferenceCustomize payroll system default accountsCustomize and update the Chart of Accounts List for payrollSet up payroll to accept manual entriesCustomize the Payroll Item List for payroll items created byQuickBooksUpdate the Payroll Item ListDisplay and print thePayroll Item Listingreport© Paradigm Publishing, Inc.3
Introduction© Paradigm Publishing, Inc.4QuickBooks allows you to process payroll and track payrollinformation for your company’s employeesPayroll involves:computing each employee’s gross earningsdetermining each employee’s withholding and deductionsWithholdings refer to the payroll taxes the employer is required to take out of theemployee’s paycheck and submit to the appropriate government agency.Deductions refer to the amount taken out of the employee’s paycheck for variousfringe benefits such as insurance, pension, and so on.calculating each employee’s net paypreparing employee paychecksproperly recording payroll-related transactions (journal entries)submitting payroll withholdings to the appropriate tax agency orother entitypreparing payroll compliance reports
Introduction Cont.© Paradigm Publishing, Inc.5In order to process payroll in QuickBooks, the payrollmust first be set up.Payroll setup involvesenabling the payroll featurecustomizing and adding payroll accounts to the Chart ofAccounts Listchoosing a QuickBooks payroll service or activating themanual entries featurecustomizing pre-established payroll itemsestablishing payroll items such as compensation and payrolltaxes or payroll deductionsThese payroll items comprise the Payroll Item List.
QuickBooks v. ManualAccounting© Paradigm Publishing, Inc.6In a manual accounting system the process ofpreparing a payroll is laborious and time-consuming.For each employee, the company has totally the hours worked in a pay periodcompute the gross pay for the pay perioddetermine all the withholdings and deductions from the employee’spayAfter completing these computations, the companyhas toprepare pay checksprepare pay stubs showing all the earnings, withholdings, anddeductions for the pay periodprepare all the year-to-date earnings, withholdings, and deductions
QuickBooks v.ManualAccounting Cont.© Paradigm Publishing, Inc.7Payroll was one of the first accounting tasks to beavailable on computers.Payroll preparation firms were formed for this sole purpose.

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Term
Fall
Professor
NoProfessor
Tags
Taxation in the United States, Federal Insurance Contributions Act tax

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