 So let's go ahead and submit the payroll. And so now we've got this item, we've got a survey. I'm not gonna do the survey, no survey right now and not using direct deposit. So if you have direct deposit, then you can set up the direct deposit. Otherwise we're gonna be entering the check numbers into the system. I'm gonna let it auto fill the check numbers. So auto fill the check numbers, enter a start check number greater than zero. I'll leave that be for now. Let's take a look at the paystubs. Now remember from an HR perspective, we generally have to give the employees a paystub in some way, shape, or form because we have to tell them not only that they got a net check but what we took out of their check. So this is, if you have an electronic transfer you'd still need to give them this information and notice what we have here. We've got the current and the year to date. So this is the salary current in year to date. They're the same right now. Obviously they would be different if it wasn't the first pay period. Social security, federal income tax, Medicare taken out. They've got the summary current year to date on the right. And we have that for both of our employees. So that looks good. I'm gonna close that back up and let's go ahead and finish this out. So I'll say finish payroll and then let's make sure taxes got paid on time. Most small businesses pay taxes every month. So set up taxes now and I'm gonna say that we'll do it later. I'll do it later for the practice problem purposes. Obviously that when you're gonna have to pay the taxes will be partially independent on the company themselves and you might have different requirements for when or how often or how far after the payroll you have to actually be paying the taxes. So let's take a look at that now as we see the impacts. A lot of the times the first thing I like to look at is the actual check register. So we can find that in the accounting and then the chart of accounts. And if you're in the business view by the way it would be the chart of accounts is in the bookkeeping and then the chart of accounts under the manage. And then in the chart of accounts I'm gonna select the check register to see where those checks that were created. Here are the two paychecks that were created. Now it didn't apply the check number for whatever reason. I tried to auto fill the check number in there. So I'm gonna go in and add the check number if I can. Let's try to edit Adams first. I'm gonna go into Adam and then let's edit and I'm gonna try to give Adam a check number here and I'm gonna call it 1012. Because when I do the bank reconciliations I'm gonna have a check number on it. And so I'd like to tie that out. It's not a big deal but I'd like to do that if I could. So I'm gonna save that and then I'm gonna go back into the hamburger up top and we're gonna go back into the accounting on the left hand side, the chart of accounts again. I'm gonna go into the register and just try to add the other check number to Erica. Erica edit that one. And this is gonna be, I'm gonna say 1013. All right, so not a big deal if you don't have that but it'll make it a little bit easier to tie out on the bank reconciliation. So if I go back down into the accounting and we go into the chart of accounts and open up the cash, there they are. Okay, then let's take a look at the impact on the financial statements. If I go to the balance sheet we're gonna say what's gonna happen from this. Well, obviously the checking account went down so cash is gonna go down. We generated however many checks, we have employees when we processed them, there's our two checks. Obviously these amounts are the net check. They're not the full payroll that was received in terms of gross pay. On the income statement, if I go to the income statement and refresh it, run it to refresh it, then we have down here the wages and if you don't like wages you could change the name of the account possibly to like payroll or whatever you wanna call it. But we've got the six, nine, eight, three, 33. Those are the gross wages that were earned before we took out the taxes from them, the withholdings. And so there is that. And then we also had our taxes as the employer that we had to pay over and above the payroll taxes. This is our kind of matching portion for the way that payroll taxes are set up, social security and Medicare. And we're gonna have a liability back to the balance sheet. We have a liability down here for those taxes. So we've got them down here. Now they grouped them in these two categories here and you could kind of go in and try to adjust the categories if you wanna group your categories differently. But let's first go into here, federal taxes that were withheld. This is what we withheld. And the portion that we owe for the employer taxes that we have to then pay at some future point after the payroll is processed to the government. So that's the general idea with the payroll. Now remember if you had a third party payroll provider doing the taxes and then you would want to enter the information into the system just possibly like one lump sum here given their payroll reports. So your financial statements are correct. You can even try to stay in a cash-based system and try to wait till everything clears the bank be on a cash-based system and record the payroll taxes and liabilities as expenses when you actually pay them and then make a period end adjustment for financial reporting at the end of the month or the end of the year possibly with the help of the CPA firm and your payroll provider periodically. If you wanted to be a bookkeeper trying to automate everything on a cash-based system possibly with the bank feeds as much as possible and then making a periodic adjustment. You don't have that option if you're processing payroll within QuickBooks because you need all this added data. All this information is necessary in order to generate the information that's needed from an HR perspective as well as processing the checks as well as creating the financial statements at the end of the quarter and the year. Let's go to the tab to the right, right-click and duplicate that tab and then just note that we also have other payroll reports that are gonna be generated now that we have payroll turned on that's under the reports on the left-hand side and we can scroll down to the payroll reports. Pay, row, scroll down. So here's our employee reports and then we have all these payroll reports down below. So it's a plethora of payroll reports. Let's look at the payroll detail reports. So opening up the payroll detail I've closed up the hamburger so we've got the date range for, I just put the whole year January through December 2023. Obviously we only have one payroll period for the first month of operations. We've got our two employees. Notice that we can see this in terms of an employee by employee breakout and we can also see it in terms of the gross amount. So this is similar to a report that you might get from like a third-party payroll provider if you had this done by a third-party provider that you can then use again to give your summary information for the financial reporting on either a paycheck by paycheck basis or a month-end, quarter-end or a year-end basis as you need to be putting that into the system for whatever your needs may be. Now, obviously when you're processing payroll within the QuickBooks system, you can see all the added data that's gonna accumulate up as we're tracking the information necessary for the processing of payroll, for issuing the stubs, for filling out the reports. And at the end of the year you wanna get everything entered as best you can for the payroll and try to not have a system where you have errors when you're doing the data input. You'd rather not tinker around with something until you get it right with payroll, but rather get it right the first time because oftentimes if something's not set up right, it's gonna come to light like at the end of the year when you're really busy doing everything else and that's kind of an issue with payroll sometimes. So at the end of the year, of course you're gonna have to process all of the last 941, the 940, the W-2s and the W-3. And this information will be necessary or this is the type of information used by QuickBooks to help to populate those forms. And if you were in an audit or something like that, you would expect the payroll forms here to tie out to what's reflected on the financial statements to be able to tie out to what's reflected on the reporting forms, the 941s, the 940s and the W-2 forms.