Payroll management is the most complex element of QuickBooks. Here’s one of the simpler tasks involved.
If you’re already managing your own payroll runs in QuickBooks, you know how complex and time-consuming that part of your job is. A good QuickBooks training course could probably help you understand the process better.
Some payroll tasks are easier than others. For example, it’s not overly difficult to set up new payroll items. You need a payroll item for every line on your employees’ paystubs that identifies funds that are either added (compensation) or deducted (withholding, like taxes and benefits). QuickBooks’ payroll setup walks you through their initial creation.
But let’s say that the parking ramp down the street from your office has decided to give your employees a price break if they park there regularly. They want these fees submitted to them monthly, in one check from you. The easiest way to handle it would be to set up a new payroll item to deduct the money from employees’ paychecks, and then write the monthly check yourself.
To begin, click Lists | Payroll Item List. Right-click anywhere within the list and select New. A window appears, asking you to Select setup method. Choose EZ Setup and click Next. This window opens:
You can select the type of payroll item you’re creating in this window.
For your new parking fee, you’d click on the button next to Other Deductions (Garnishments, Union Dues…). Click Next, and QuickBooks launches its payroll setup tool.
In the next window that opens, put a checkmark in the box next to Miscellaneous deduction and click Next. You’ll see this:
QuickBooks helps you determine how payroll deductions will be handled.
If you haven’t already created a vendor record for the parking structure, just enter its name here. You can complete it later, outside of the payroll setup area. If it’s there, click the area next to the drop-down list and select it.
Fill in the next line with the account number that the vendor has supplied to you. Next, you’ll have to decide how to collect the funds from the affected employees. Make a choice and click the radio button next to it.
In the next window, click Finish, and QuickBooks will return you to the Payroll Item List. But you’ll want to name your new deduction. So right-click on the Miscellaneous Deduction line and select Edit Payroll Item. You’ll see this window.
You’ll name your parking fee deduction in the Edit payroll item window.
Fill in the name that you want to appear on paystubs and in reports, etc., and click Next. Here’s where a QuickBooks training course would come in handy. In the following screens, you’ll have to specify the related liability account, tax tracking type, and taxes that will be affected, as well as instructing QuickBooks on calculating the deduction.
If you can do this on your own, complete the remaining screens and click Finish. Your new payroll item is now ready to add to the records of employees who wish to participate.