Our recommendation to our Clients for Payroll is to use ADP or some other payroll service. They are up to date on the tax laws and they sometimes will take the responsibility for your filing your payroll taxes. Another alternative is to use and inexpensive payroll package like Quick Books. If you choose to use Quick Books we can assist you with the implementation.
If you would like to use The Business Edge to record your payroll checks you can enter them into Accounts Payable. If you are using this method the Taxes and deductions must be calculated manually.
You can use the Schedule E from the Internal Revenue Service to figure the Federal Taxes. A new Schedule E is issued each year with new tax rates as well as maximum deduction amounts.
For State taxes you will need to refer to documents provided by your state.
Below is an example of an employee check. In this example we are in Accounts Payable, Process Individual Checks, Enter and Edit A/P Checks. We are entering a check and an Invoice on the fly.
Each Employee must be entered as an Accounts Payable Vendor in the System. Select the Employee that you would like to pay. Enter a unique Invoice Number. A suggestion might be the date of the check YYMMDD. This type of Invoice Number will display the checks in order if you are doing a Vendor Inquiry.
Press F4 for Multiple Distributions. This function will enable you to enter multiple General Ledger Accounts. You will enter the employee’s Gross Pay as a Debit. Each deduction is entered as a Negative number and will then be displayed as a Credit. Below in the example there is also an entry for Health Insurance. The Health Insurance is entered as a Debit because it is a reimbursement to the employee, another example of this might be a Car Allowance or Mileage that you are including on an employees check.
After entering all of the Checks you should print an Accounts Payable Checks in Process Register. You can then check over your entries. If everything looks good, Print the checks. The system will then provide you with a General Ledger Summary. You should Print the General Ledger Summary.
The totals presented on the General Ledger Summary will give you or your Accountant the necessary information to pay your Taxes. In addition to paying the Taxes deducted from the employee checks you will have to pay Employer matching Social Security and Medicare as well as any FUTA, SUTA and any other taxes required by your state.
