QuickBooks business accounting software offers numerous features that helps in smooth business management. The software comprise of accrued payroll feature. Accrued payroll refers to current liability that further comprise four sections. User can generate a number of Payroll Reports while using QB desktop software .
Learn More on how the amount is reported in the current liability section of the balance sheet.
Till the accounting period ends there are many business owners who have not paid the employees for the time worked since the earlier payroll. This situation can end up with significant dollar value associated with these unpaid earnings. In case you run a small business and you are on a cash basis of accounting, you might ignore calculating the value for the time worked by the employees. But if you are following accrual accounting you should calculate the dollar value earned by the staff and enter the dollar amount to a current liability account called Wages Earned and Unpaid. The process is very simple.
The change is calculated by deducting the prior accounting period aggregated amount from the current period calculation and the adjustment is made to the Wages Earned & Unpaid account. The compensated amount is further entered in the Profit and Loss Statement in the wages section.
Personal Time Off (PTO)
The employers set sick leaves and causal leaves that can be used when the employees fall sick or go out for a vacation. Many employers follow that the sick leave or casual leave requirement can be availed after 90 days of work completion prior to vesting. This is similar for the earned wages mentioned above.
The compensated dollar value is entered to the profit and loss statement.
When the employer issued paycheck he is supposed to withhold Social Security taxes, Medicare taxes, federal income taxes, state income taxes and in some situations, local income taxes. Furthermore, the employer has to match the Social Security and Medicare payroll tax. Hence all employers are bound to pay Federal Unemployment Taxes and State Unemployment Taxes (FUTA and SUTA). This section of Accrued Payroll is the total dollar value associated with these taxes. The payroll software automatically enters all the information as the payroll is run. The small businesses those use QuickBooks Pro to process payroll and QuickBooks automatically calculates the dollar amount and enters the taxes to four different accounts.
Advantages and Third Party Obligations
Eventually when the small business grows, the business owner offer benefits to his employees such as matching retirement contribution and many more. The low salaried paid employees rarely take advantage of a matching amount. In addition to retirement benefits, health insurance is the most expensive benefit provided to employees. When the benefits accrue and the business compulsory to pay the benefits. The dollar amount is posted here and the and the compensated amount is posted to the profit and loss statement. The other benefits accrued are as follows:
You need to follow the steps accordingly to record accrued payroll.
Following the steps will help you in reporting the payroll/taxes in the proper period. When the payroll becomes more complicated with the growth of the company grows, the employer owner should convert his current liabilities section of the balance sheet.
For further assistance in Accrued Payroll Report in QuickBooks you can Contact QuickBooks Payroll support . You can reach them either through email, phone or live chat option.
Alternatively you can choose QBPayrollHelp that is a reliable third party QB support agency roofing highly capable QuickBooks experts who help in dissolving the issues instantly and providing authentic information on QuickBooks payroll. To connect with the support executive call to the toll free phone support number 1844 827 3817 or can get help from QuickBooks Payroll Chat Support team garner excellent QuickBooks assistance services.