QB Issue Resolution:

I don’t understand this comment: “As a result, I cannot credit the bank account after debiting all the appropriate liability/expense accounts without making the bank balance inaccurate in QBO.”

 

Then the JE is wrong. For one thing, if the Payroll service impounds the tax funds, you would not have a separate amount and there is no liability accounting to be done. You put in that JE what happens in real life for the paydate. Example:

Gross Wages Debit Expense

Employer Tax Debit Expense

Banking credit(s) for as many Transactions as the service takes from banking, such as All Direct Deposit and All Tax Impound(s)

= 0

Or,

Gross Wages Debit Expense

Employer Tax Debit Expense

Credits are split to Banking and Liability, for amounts not taken at this point in time. Later, you enter banking to pay that Liability.

 

Or, you want details for each Paycheck on the Check Expense in the name of each employee?

 

“In addition, the business isn’t fully supporting itself yet, so it isn’t like the necessary money stays sitting in the bank account until it is needed.”

 

That makes no difference to your tasks of data entry. You simply enter everything that happens.

 

“Instead it is spent for other bills and he will put money back in the account when the expense shows up, if needed.”

 

Yes, that is how it happens for anyone.

 

“Therefore, I feel the liability account amounts are not even accurate when I work things up outside of QBO.”

 

Then you made some wrong value entries.

 

“2) This is also a problem with Sales Tax. I have considered turning on the sales tax feature to figure the sales tax that way, but I feel that is a waste of my time and his money since someone else is already doing that. Not to mention, I am unsure if that will solve this issue.”

 

You never use two different systems for computing; they will not work the exact same. So, your Sales entries are:

Various Payments as Debit Banking (might be one deposit for that date)

Gross Sales Credit Income

Sales tax Credit Liability

= 0

And later, the Sales Tax payment is paying out that Liability.

 

“to send credits to in order to balance out Journal Entries”

 

They should self-balance, or you overlooked part of the data entry details.

 

“and write things off and then delete it at year’s end, at which point I will have him follow appropriate practices in 2019. If someone could give me alternative or appropriate fixes for this problem, I would really appreciate it! Thanks!! ‘

 

What would there be to Write off? That typically means something got overlooked, and you simply want to hide it?

 

Examples:

 

https://quickbooks.intuit.com/community/Employees-and-payroll-taxes/Record-payroll-transactions-manu…

 

https://qblittlesquare.com/2011/02/payroll-i-want-to-do-it-myself/

 

Resolution for Issue 'Entering Outsourced Payroll & Taxes' available: Yes (Solved).
Source: Intuit Community forum.

Entering Outsourced Payroll & Taxes: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for Outsourced Payroll
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