 it's possible for you to kind of more automate the payroll process once it's going to be set up so that hopefully the the pain of the payroll will happen you know when it's required to happen soon after you process the payroll so you can kind of automate the system but we can't get too much more detailed in our practice problem than that so i'm going to just enter a normal check into the system to record us paying the government for the payroll so once again you would want to do this in practice through the payroll system because when you process the 940s and the 941s what will happen is it'll recalculate your liability and then it'll show how much you paid them and hopefully you paid the exact amount of the liability and the amount that you will owe at the point that you process the 941s quarterly will be zero it's kind of like the form 1040 where in a perfect world you would already have paid your taxes exactly when you file the form 1040 by April 15th and that should match your liability and you wouldn't get a refund or own any taxes at that point it's impossible to do that because of the complexity of the tax code for the individual income taxes but that's the idea it is possible to do that in payroll because they haven't completely made it totally out of whack that you can't do that anymore by having too much complication in the tax code as of yet so they'll probably get there at some point but in any case so if you don't if you don't pay through the system it's not going to generate these reports that will populate automatically the amount that you that you have already paid and that's you're going to have a problem with your 9 with reporting your 940s and your 941s and that way and so on so but this is what we got to do with the practice problem so i'm going to make a check we're just going to write a check form plus button i'm going to make it a check form we're going to decrease the check in account other side going to the liability so i'm going to say this is going to go to let's say now i'm going to make actually three separate payments and three separate vendors even though the federal income tax the social security and medicare are all going to you know the federal government to allow it to tie into the bank reconciliation that we have already met made so i'm going to say irs f it federal income tax so that's going to be the vendor i'm going to set up and i'm just going to say that's going to be our vendor save it and then i'm going to say this is the check that went out i'm going to say at the end of february o 22823 for the amount that is due at the end of january or the payroll that reprocessed in january now i have to adjust the check number because we manually adjusted the check numbers in a prior presentation so one zero two four i'm going to put that check number in which will be useful when we do the bank reconciliation if their bank reconciliation doesn't tie in you don't have a check number not a big deal we'll still be able to work it but i'm going to try to tie that into our bank rex and then we're going to say the payroll liabilities we want the payroll liabilities federal taxes blah blah blah 941 943 and so on and so i'm going to take the amount of one zero eight zero now i'm going to make two other checks which are in essence going to do the same thing checks decreasing the checking account the other side decreasing the liability account just making three checks to tie into the format that we have on our bank bank statement that will be used to do our bank reconciliation so i'm going to say save and new let's do it again ultra vase i'm going to make another vendor up top it's going to be irs and i'm going to say this time medicare irs medicare medicare's who's meta meta doesn't care it's a medicare like a meta thing this is going to be 228 there we have it so i think the check number is now back on in alignment 228 that's what we want this is also going to go to the federal and federal taxes but the 941 blah blah blah and this one is going to be for the amount of 8 2.52 and then we'll do it one more time uno vase mas hitting the drop down i don't need the drop down save and new so this one is going to be i'm going to say one more time irs social security company we'll just say okay boom and i'm making up the vendors they're all going to the to the government they're all federal taxes but in theory they're going to you know into different funds you know to be spent on different things although i'm highly skeptical that they just don't find a way to spend whatever they want on whatever they want to spend it on but that's a different issue where doesn't matter where this is the bookkeeping it's not getting to how the government waste our money so now the whole nother story so here we go so we've got that one so now that looks good so now let's say save it and close it so i'm going to hit the drop down and save and close and check out what happened we're going to go to the tab to the right scroll and up let's run it to refresh it so we got fresh stuff and go into the checking account so within the checking i can scroll down and then we've got our checks that we have made here noting that they're not like special payroll checks or payroll tax checks or anything like that which is an indication that we processed them not using the payroll widget right so so if there was an issue where i processed the 941s and the deposits that i made are not showing up properly this would be an indication as to why right because i didn't use the payroll widget i couldn't in the practice problem but in practice if things aren't matching up you can go in here and say okay yeah i see what's happening because you're doing payroll stuff without using the payroll widget thing which means your sub ledger reports are off which means that they're not properly populating the 941s the 940s and the w2s and w3s and whatnot back to the report the other side is decreasing the liabilities here so if i go into the payroll liabilities boom and then go into this thingy dingy then now we've got our three checks and once again we can see them as checks so so that would be an indication in here in an account that should have nothing but payroll type related transaction type forms when you have non payroll related transaction type forms if you're processing payroll within quickbooks instead of by a third party provider that would be an indication of okay what's going on here you know something got out of whack and they're trying to fix things and and things got more out of whack because they're fixing things outside of the widget but we have to do it in a practice problem because we're not working in real time and that's the issue so now we paid off the payroll for the first month so let's pull out the trustee calculator here just to kind of get an idea of this so we processed payroll we processed payroll for through january and we ended up with a liability of 2028 46 right and then we paid the payroll here with these three checks these three checks which are coming to out to 1080 plus the 82.52 plus the 865.94 and that's what comes out to this 2028 46 which matches that so we paid off the payroll for january in february we still have a liability which is from the transact the payroll that we processed at the end of february which we're going to be paying in march that's that's the general idea after we do this no matter how many no how many no matter how we're structured whether we pay weekly whether we pay bi-weekly whether we pay monthly or semi-monthly after the first quarter which is three months january february march usually then by the end of the next month of the second quarter of april you got to file a form 941 right that'd be the quarterly forms which are going to summarize how much how much you owed and whether or not you paid that amount and hopefully it should be an information type of report so you can have to basically summarize this whole thing again on a quarterly basis that's the general idea and then show the irs or the government how much your liability is how much you actually paid hopefully those things tie out so you don't owe anything at the point that you file the form 941 on a quarterly basis and then you would also generally have to do that on a yearly basis for the form 940 as well