Third Party Payroll Software

How to update Ledger and Bank when you are using third party software.

For example, you have contracted with PayCorp (just one of many companies) and they will handle daily payroll and payment of taxes.

Any payroll software will provide documentation of what they are paying.

This information has to be placed into AGRIS Ledger and be keyed as a withdrawal from the bank; even when we are not keying hours and creating checks into the payroll package.

General Plan:

1. Key in Manual ledger entry for paycheck entries with the offset hitting a payroll clearing account for the paycheck amounts.

2. Key in manual ledger entry for matching 401K/Roth/Retirement expense coded to 401K/Roth payables.

3. Key in manual ledger entry for paying taxes (employer and employee) with the offset hitting a payroll clearing account.

4. Key a manual withdrawal to bank for the amount removed from bank
   (Employee Net Pay + FICA(Employee & Employer) + FIT + SIT + FUTA + SUTA)

Overall the payroll clearing account will wash to zero.
Your ledger accounts will be affected and bank will receive a withdrawal.

Open

Third Party Payroll Check Report

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Ledger entry examples tied to payroll report. Note color coding.