 So we turned on payroll in the system. I'm going to go back to the tab to the left because it was part of the free 30-day trial. So we turned on the payroll. Payroll is a little bit difficult. So if I go into the payroll and the overview up top, it's a little bit difficult to follow along with the payroll in a practice problem because payroll is one of those things that generally needs to be run real time. So if you're working way out into the future, for example, as you're looking at this practice problem, you might not be able to process payroll in exactly the same way. That's part of the problems with the payroll. Also, just realize that the payroll will change from quarter to quarter. So you usually want like a whole years of payroll in one payroll system. You don't really want to change payroll in the middle of the year. You can, but it's not preferred because there's caps on things like social security and federal income tax. So obviously when you do like the 941s or process payroll from one period to the prior period, you compare it to the prior period. That's what we always do with accounting. But it'll change as the year goes as people hit some of these caps for like federal unemployment tax and social security and that kind of stuff. So just a couple things to keep aware of. So we're just going to go in. We've set up the payroll, the payroll set up. We've added our employees. We've got our two employees. We set up to be paying payroll on a monthly basis as opposed to weekly semi-monthly and so on. And so now we'll just go up here and process the payroll. So I'm just going to run the payroll and hope that they'll allow me to run it even though I'm not in the real time here. So I'm going to hit the dropdown. This period by period has been set up when we set up the payroll so that the next period that we would run would be 2023. So February, February 2023, there's the pay range, the period, because we have a monthly period. So it's the full month. The pay date happens to be the same day as the end of the period, which may not always be the case. You might have a pay date that's a little bit after the end of the period. So you have a little bit of time to process the payroll after the pay period, but we're going to keep the same date here to keep it in that second month that we're working on. And then if everything was laid out properly, you might be able to just process from here, but we need to go in and make some adjustments because of the practice problem. And so I'm going to go into Hamilton and actually that's going into his information stuff. I'm going to close that. I'm going to go into the pencil on the right hand side so I can see the calculation this way. So we've got the summary of the information. We've got the pay. He's a salaried employee. So this is the salaried amount. I'm going to pull out the trusty calculator here for some trusty calculations. Where's the calculator? It's not in the recent area. I've been using it all the time. So we're going to say this is going to be, I think it was 55,000 divided by 12. That's where the 4583, 55,000 a year. And then if I go into the employees, this federal income tax is one of the most confusing ones. We would populate it from tables and whatnot in the information that was populated in the W-4. But that's one of the things you're paying for, for QuickBooks because it's not a flat tax. So that's one of the confusing ones to calculate. So I'm going to make a number up that matches our practice problem that's not coming from the W-4. I just wanted to match the numbers in our practice problems so it'll tie out to our bank reconciliations. Now, the social security and Medicare should be easier because that's just going to be the 4583.33 times .062, I think is currently the calculation. So that's a nice, easy one to do because it basically is a flat tax, although there is a cap. So if they get above the wage cap, this number will change. It'll be lower. And that's what I mean about the payroll possibly being different from period to period as you go through the year. And then we've got the Medicare. We've got the 4583.33 times .0145. That gives us the 6646 about I'm not going to do any California tax because I want to make it kind of like a generic problem on the payroll side. And then you've got the employer taxes, which are matching social security and Medicare. So and there would also be the federal unemployment tax, which I didn't add because that's a much smaller tax. And again, I want to keep it kind of generic for our practice problem. So up top then, if we think about this, we've got this would be what they earned. This is what we're taking out of their earnings. These are in essence the mandatory withholdings for federal taxes. You could also have mandatory withholdings for your state and local taxes. As for example, California might be, but that will be changing from place to place. You can also have voluntary withholdings, which might include things like health insurance 401k and that kind of stuff. We have a whole course that goes into at least setting that up and more detail. If you want to dive into that in more detail, it's a whole thing in and of itself. And then down here, we've got the employer taxes, which are matching the social security. So what's going to be the transaction for this one employee as I go through it? Remember that you can think about the financial transactions, what's going to happen to the financial statements on an employee by employee basis, or as though all employees were kind of like one employee. So if I was doing my payroll from a third party provider and entering them into my system, I might think of all the transactions as one, one big employee, right? And enter a journal entry or something like that into the system, although I still need to reconcile the bank's accounts. But that's the way that that's the way that you can think of it. If you're doing this stuff internally, you can't it's useful to think of it as one big employee. What's the impact on the financials, but you also need all this added detail so that you can provide what you need to the employees on the pay stubs and on the reports to 941s to 940 and W2s and W3s. That's why it gets messy. So that means this is going to be a debit or an increase to the payroll expense. And then all of this stuff is going to be decreasing or increasing a liability for the liability account and the difference between the two 4583.33.33 minus the 105.62. That's what's going to be decreasing the cash account. And then down here, this is going to be increasing the the expense account for payroll expense, payroll tax expense, and the other side's going to be increasing a liability account. And then we'll have to pay off the liabilities in the future. Okay, let's save that. Let's just, does that make sense? I think everything is proper. Okay, so let's close that up and let's do this for Erica. Let's check out Erica. I mean, I'm checking out her wages, her wages. Don't sick the HR department on me. I am the HR department. We're payroll over here. I'm just looking at Erica's wages. So we're going to say Erica, let's say that Erica had hours of 360. And so update the time sheet hours. I'm going to say, so it's trying to link to the time sheet because I put the time sheet on the payroll, but I was basically using the time sheet to populate the information for the invoices more than pull it in for the purposes of the payroll. So I'm going to kind of discard the time sheet here. So that's going to give us 15. That's going to be, that's going to be, then we'll hold on a second. I'm going to put in here, not 360. I'm going to put 160. And so that'll be 2,400. Okay. And then what we're going to withhold, I'm going to change this again. I know it's really high, but I'm going to change it to 360 to tie out to our numbers in our practice problem and remove the California tax. So that means that the 2,400 times .062, that's where they came out with that 14880. And the 2,400 times the .1045 is where they come up with that 3480. And then we've got our match down here. So for this employee, the transaction would be when we record this, we're going to have, you can think of it first as a payroll check. So you might say, well, the payroll check is going to go, cash is going to go down by 2400, 2400 minus the 543.6. It's going to go down by that, by that 185640. And then the other side is going to be payroll expense, but it's going to go on there for the full amount of the 2,400. The difference, the liability, this kind of sounds like sales tax may be to you. The liability, which is their taxes, the employee's taxes, kind of like the sales tax is supposed to be the customer's taxes, is going to go into the liability account for the liabilities. And then we're going to pay taxes over and above. These are our taxes. So we have payroll expense, payroll tax expense for the 18360 and liabilities going up for that amount as well. So again, you can see that check by check and you can also see it in total. So if I was to think of both employees as one large employee, you could think of the transaction that way as well. Let me just double check these numbers. So that looks, that looks good. And that looks, that looks, that looks, that looks good, I think. So and remember, payroll is one of those things you want to measure twice and cut once. You don't want to have to reprocess payroll generally because