QB Issue Resolution:
I’m going to outline one method you can use to manually enter payroll and track source deductions. To make this post easier to sort through, I’ve included links at the bottom with steps for some of the processes I mention, as well as a screenshot of an example cheque.
This process is based on how QuickBooks Online Payroll would set up your accounts and keep track of source deductions if you were to turn on that feature. You’re welcome to use this as a template, but I’d recommend consulting an accountant if you have questions about specific pay types or deductions.
To track the source deductions as you enter the paycheques, you’ll need to create expense and liability accounts for them in your Chart of Accounts. Here are the basic account outlines:
- Payroll Expenses Type: Expenses Category Type: Payroll Expenses
- Payroll liabilities Type: Other Current Liabilities Category Type: Payroll Liabilities
- Federal Taxes
The indented lines are sub-accounts and have the same Type and Category Type as their parent. This setup lets you separate the different types of liabilities and expenses into categories, making your reports easier to read.
Since you don’t have access to the specialized payroll reports, you may want to create a second set of sub-accounts underneath the current ones to track your source deductions individually. For example:
- Payroll Liabilities
- Federal Taxes
- Employer EI
- Employer CPP
- Employee Income Tax
- Employee EI
- Employee CPP
- Federal Taxes
If your employee has additional deductions or contributions, be sure to create liability and expense accounts for those as well.
After you have the accounts set up, you can use Cheques or Expenses to record the payroll. Check out the attached screenshot for an example.
Note: In the example cheque I added a lot of detail to the description lines so you could better understand where my numbers were coming from. In practice, you’ll want to find a good balance between including enough detail for your records, but formatting it so all of the information shows when you print the cheque. The sub-sub-accounts can help with this.
Also, you might consider printing expense claims to give to your employee so he or she can have a summary of their paycheque. To do this, click Print or Preview at the bottom middle of the cheque and select Print Expense Claim.
If you have any questions about this process, feel free to reach out to me!
Adding new accounts to the Chart of Accounts: https://community.intuit.com/articles/1602607
Creating sub-accounts: https://community.intuit.com/questions/838914
Adding a new employee: https://community.intuit.com/articles/1614743
Recording a loan payment (this can help with recording your payroll remittances): https://community.intuit.com/articles/1145895
How to record payroll using journal entries. This article goes into more detail about the process and has some good tips, but it is written for US customers, so you’d need to make the proper substitutions to use it. https://community.intuit.com/articles/1145322
Resolution for Issue 'How to enter employee paycheques from last year manually and track source deductions at the same time (Canada).' available: Yes (Solved).
Source: Intuit Community forum.
How to enter employee paycheques from last year manually and track source deductions at the same time (Canada).: 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 Employee
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