Monthly Tax Payments

[northsidebc]

I am new to PC Plus, and this is my first time to pay monthly FICA taxes. What is the proper procedure to pay monthly taxes electronically? Also, what account codes do I need to use? We kept the 01-2215-000 liability account where the amount is set aside to pay the taxes. Do I DEBIT or CREDIT this account, and what would I need to use for the corresponding DEBIT or CREDIT account to record the electronic transfer from our checking account to the IRS?

ANY help would be appreciated.

Carroll

[NeilZ]

I am new to PC Plus, and this is my first time to pay monthly FICA taxes. What is the proper procedure to pay monthly taxes electronically? Also, what account codes do I need to use? We kept the 01-2215-000 liability account where the amount is set aside to pay the taxes. Do I DEBIT or CREDIT this account, and what would I need to use for the corresponding DEBIT or CREDIT account to record the electronic transfer from our checking account to the IRS?

ANY help would be appreciated.

Carroll

Carroll,

if you have the Payroll setup properly, all the FICA that is being withheld from employees taxes would be accounted for in the liability accounts.

If you have the IRS setup properly as a Vendor in the Accounts Payable, on the Account Information page it will ask you to select the Debit acct (expense), in this case you should have the Liability account selected. The next line asks you for the Credit Acct (bank] which should be your checking account.

In Payroll, there is the Create Accounts Payable Entry which effectively creates an invoice for you in accounts payable. If you select Manual Check here, and enter EFT as the Reference , it will create the manual check in Accounts Payable, which you can then post to Accounts Payable, which will then create the proper transactions in Funds Accounting, which you then post to actually update the Chart of Accounts. This will handle your EFT transaction.

Does this help ??

[northsidebc]

When I selected
Payroll ===> Create Accounts Payable Entry

It said "No items were found to process"

What did I do wrong?

Carroll

[NeilZ]

When I selected
Payroll ===> Create Accounts Payable Entry

It said "No items were found to process"

What did I do wrong?

Carroll

Did you process payroll checks through payroll ??

[northsidebc]

Yes, I processed checks through the payroll module.
I did not have the IRS set up as a vendor until yesterday.

Carroll

[northsidebc]

I ran payroll today (2/2/2011) and now I can get the amounts to show up on the Payroll ==> Create Accounts payable entries.
I'm guessing that I didn't have anything to process because I did not associate Payroll with IRS as a vendor.
I'll just have to do the January payment manually if I can figure out how to get the amount of the payment deducted from the Federal Withholding account.

Do you have any ideas how to do this?

Carroll

[NeilZ]

I ran payroll today (2/2/2011) and now I can get the amounts to show up on the Payroll ==> Create Accounts payable entries.
I'm guessing that I didn't have anything to process because I did not associate Payroll with IRS as a vendor.
I'll just have to do the January payment manually if I can figure out how to get the amount of the payment deducted from the Federal Withholding account.

Do you have any ideas how to do this?

Carroll

SImply write a manual check, select the IRS as the vendor, and since you've now added the IRS as a vendor with the Liability account setup as the default on the Vendor record, the system will automatically default and add the proper accounts on bottom of the manual check screen.