Chapter 9-Payroll Processing.pptx - Computerized Accounting...

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Computerized Accounting with QuickBooks 2018
Chapter9Payroll ProcessingPaying Employees, PayingPayroll Liabilities, andProcessing Payroll Forms© Paradigm Publishing, Inc.2
ObjectivesReview accounting for payroll transactionsUpdate the Employee CenterRecord payroll in the Pay Employees windowsRecord payments of payroll taxes in the Pay LiabilitieswindowDisplay and print payroll-related reports, accountingreports, and financial statements© Paradigm Publishing, Inc.3
Introduction© Paradigm Publishing, Inc.4QuickBooks allows you to process payroll and track payroll informationfor your company’s employees.You can establish a file for each employee and then process payrolltransactions.These employee files comprise the Employee Center.Once you have established an employee file, you can enter transactionsfor payroll (Activities) in the windows:Pay EmployeesPay LiabilitiesEvery time a company processes payroll for employees in the activitieswindows, QuickBooks simultaneously updates the information in theEmployee Center.QuickBooks changes balance sheet and income statement accountsbased upon payroll transactions entered in the payroll activitieswindows.
QuickBooks v. ManualAccounting© Paradigm Publishing, Inc.5In a manual accounting system, employee pay transactions are usuallyrecorded in a payroll journal or register:employee’s gross paytax withholdingother payroll deductionsThe transactions use the applicable tax schedules and the employee’sbackground information:pay ratemarital statusstate of residency, and so onPayroll checks and tax remittance checks are usually recorded in thecash payments journal.In QuickBooks, the Employee Center contains background informationfor each employee, such as name, address, Social Security number, payrate, tax deductions.
QuickBooks v. ManualAccounting Cont.© Paradigm Publishing, Inc.6When the company processes payroll, the transactions arerecorded in the Pay Employees window.QuickBooks uses the information entered in the EmployeeCenter along with the items on the Payroll Item Listapplicable to the employee to determine gross pay, payrolldeductions, and net pay in the Pay Employees window.When payroll tax liabilities are paid, the Pay Liabilities window isused to record the transaction.These transactions update the Chart of Accounts List (generalledger) while at the same time updating the employee’s file.In both manual and computerized systems, payroll reports will begenerated and forwarded periodically to the appropriate federaland state tax authorities.
QuickBooks v. Manual Accounting Cont.

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Term
Fall
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payroll forms, Pay Employees

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