 QuickBooks Desktop 2023 Payroll and employee reports Let's do it! Within two weeks, QuickBooks Desktop 2023 Support a counting instruction by clicking the link below, giving you a free mug membership to all of the content on our website Broken out by category, further broken out by course Each course then organized in a logical, reasonable fashion Making it much more easy to find what you need than can be done on a YouTube page We also include added resources such as Excel practice problems, PDF files, and more Like QuickBooks backup files when applicable So once again, click the link below for a free month membership to our website and all the content on it Here we are in QuickBooks Desktop Sample Rock Castle Construction Practice File Provided by QuickBooks going through the setup process we do every time Maximizing the home page to the gray area view drop-down noting we got the hide icon bar and open windows List checked off open windows open On the left hand side reports drop-down company and financial looking at that P to L profit and the loss With the ranging and the changing from mode 101 to 4 to 12 31 to 4 january to december Customize it fonts and number it change the font it 12 it okay it yes it okay it there it is reports Drop-down again company and financial this time the big balance sheet we're going to change it this Time with the drop-down going to this fiscal year and customize so we can fonts and numbers to the font size of 12 and say okay so we could say yes and then okay again that's the setup process We've been doing every time we're now looking at some subsidiary reports or other reports other than these main two financial statement reports remembering that every other report is generally Going to be giving more detail about some line item or multiple line items on the major financial statement reports the balance sheet and the income statement that said however we're now Going into the payroll reports which are a little bit different they're going to be giving us more detail on multiple line items on the balance sheet and the income statements such as the payroll Liabilities we have down here as well as if we go to the profit and loss side of things the income and payroll taxes information down below that we can see here however payroll is a little bit different because it's not really a natural kind of just simply accounting thing it's going to be subject to taxes taxes is going to be a big component of payroll and we also have kind of like some human resources types of things with regards to our reporting needs that we need to keep in mind so let's kind of recap the payroll process in general going back to the home page noting that down below we got the employee or payroll cycle we could do the payroll all in Quickbooks in which case we would typically have to pay for the add-on feature of payroll now note there is a manual payroll that you can use but usually if you're processing the payroll you want to be paying for the payroll so that you have those extra checks that are going to help you to not make errors within payroll payroll being one of those things where you would like to follow the adage of measure twice cut once get it right the first time as opposed to kind of tinkering with it because it could be more costly to do that with regards to payroll or we could have like an external company doing the payroll something like an adp or a pay checks now the reason why payroll is going to be more complex remember that if payroll didn't have the complexity of like human resources needs and taxes then it would be kind of like paying any other vendor it would be part of the vendor process basically we could just have come up with an agreement we could pay the employee at the end of whatever our payroll our cycle is and we would just decrease the checking account and the other side we go to payroll expense and that would be it but because of taxes and human resources needs we've got all these kind of withholdings that have to be taken out for us federal income taxes that includes social security medicare and federal income taxes at the least then we also might have benefits and we might have state taxes that we have to be taking out so we have been we have been forced to in some cases and we volunteered in other cases whether they be voluntary withholdings or mandatory withholdings to take the money out of the pay before the employee even gets it and using us as kind of like the collection arm of the government and then we give that money to the government or to the benefit programs if we if we're taking money out for benefits like health insurance or something like that so we have to account for that we got to have the reports that are going to be related to that also there's kind of human resources needs in terms of how we're going to show that to the employee meaning we got us even if we take the money out we can't just give them the net check we have to show them on a period by period basis payroll period as well as a year-to-date basis how much their gross pay is what they earned what we took from them for federal income taxes like social security medicare federal income tax and other stuff and then their net pay so we've got to show that per period on a per paycheck basis and on a year-to-date basis to all employees that gets quite tedious over time we also then have to process and get the information to process the information reports which are typically quarterly and yearly those being the 941s typically quarterly the 940s yearly the w2s and the w3s on a yearly basis so we have to have extra reports to do all this kind of reporting needs again if you have payroll turned on you're going to generate that extra reporting needs within quickbooks which is a significant amount of stuff or you can try to do that externally with a third-party adp paycheck or something like that to process the payroll and then just enter in your system the financial things necessary to get your balance sheet and income statement correct okay that said let's go into our payroll reports we're going to hit the drop down you can go into the payroll reports uh this way we can go into the employee reports where are they they've right here got a whole bunch of them or we can go into the report center which is what we will do now maximize in the report center we're going to go into the employee and payroll so let's go into these I also just realized that they usually have a nice report too that you can export to excel summarize payroll and excel it doesn't work quite as well with this sample file but that gives you a nice report that looks similar to what you might get from someone that was doing payroll externally like an adp or a paycheck given you the reporting summaries on a periodic basis but in any case we'll go into the major report is usually going to be the payroll summary report let's take a look at it let's change the range up top from 010124 to 123124 and so there we have it now we've got three employees for this particular setup this particular company and even with three employees this gets quite complex to track the payroll and we don't want to try to do it usually you don't want to do it manually you would like to have some support with it even though it costs money to get the added support in some way shape or form you typically want to think out exactly what you're going to do with payroll before you implement it because again it's generally better in this case to measure twice cut once as opposed to use the tinkering adage okay so we've got the gross pay this is how you can kind of think of this is like the breakout on terms of a payroll a pay stub that you might be getting but and you can think of it in terms of employee by employee or from a company perspective we can think of it kind of as the total if we got a report front like this from someone like an adp or a paychecks then we can kind of enter it into our system thinking of all employees kind of as if they were one employee so that we can get our financial statements correct and then rely on the external providers adp and paychecks to to give the added detail needed for reporting purposes to the employees and to the government so that's one thing to think about although again you still have to reconcile so you got to think about how you're going to enter the checks in such a way that you can easily reconcile it but we've got the gross pay so this is how much they were they earned per employee and then the total and then we've got the withholdings the withholdings are going to be the federal income tax these are required withholdings for the fed side of things that we're taking from the employees wage the medic the medicare employee the social security and then california if you're in the state of california this will different by state to state withholding disability and then the total that we took out again per person employee and for the total all employees we have the voluntary withholdings meaning they have the option to participate in our group health insurance plan for example so we took out 600 600 and here for that and then this is the net check this is how much they got paid through the payroll processes that that went through after we took out the withholdings then we've got the employer stuff the federal unemployment tax which is an employer tax the medicare social security these are the taxes that we have to pay over and above not on our wages or earnings but on the expense that we have payroll expense so we got the unemployment workers compensation in the california and this is how much we took out now you can imagine we could use this information generally also to help us out to to make the forms 941 forms quarterly or this information is what will be used by quickbooks in essence to generate the 941 forms we want to be able to kind of tie all this stuff out so at the end of the year your bookkeeping process you kind of want to check all this stuff right you want to be able to tie out your your summary reports to what is reported on the balance sheet and the income statement to what is reported on the 941 quarterly forms to what is reported on the 940 year in futa form and the w2s and w3s so if we go then to the profit and loss report for example we've got the payroll items down here now the gross pay notice again like this breakout between gross pay payroll taxes futa and sutha you can group these differently like you might put payroll taxes and the gross pay into one account for example it kind of depends how you set up the payroll items you also might have multiple gross pay accounts you might have a wages account you might have an hourly pay account for example or break out the wages by location so be mindful of that but it's customary oftentimes to have the gross pay this is how much they're getting paid not including the withholdings everything without taking the withholdings out because that's what they actually earned and this would be then the payroll taxes these would be our payroll taxes the amount social security medicare futa and that we paid that that not including the amount paid by the employee because the amount paid by the employee even though we ultimately paid it we took their money in order to pay it right we withheld their money and then paid it so this is just our portion so this one one zero four hundred if i go to the summary you would think then would be this one one zero four hundred ten and then the employer taxes are going to be the the twenty thousand four oh four eighteen so if i go back to the reports so if we add these up then we can say okay there's the eight four four five point six one plus two six eight plus one two three three point five that's going to give us nine nine four seven comparing that to what we have on the summary which is the twenty thousand's the total minus the twenty four oh four point one eight the difference is this ten thousand that's the workers comp which i believe they put in another account here they put into a workers comp right there i don't know why exactly it's not the ten thousand possibly they posted something else to that as well but that's the general idea we can kind of take and tie out the summary report which would be used to create the quarterly reports the year-end reports and the w two's and the w threes and we'd like to be able to tie that out then of course to what we reported as well on the financial statements the profit and loss and the income statement back to the payroll summary we can also imagine for these three employees that the gross pay amount here would generally be reported on their w twos and the w three form is kind of like a summary reform that breaks down or imagines as though all the employees were kind of like one employee so you would imagine it would have the wages on it of the one ten four hundred ten which we could tie up to this report and to what was on the income statement and then the w twos and the w three will have the related withholdings so that it will be reported these withholdings being what we took out of their paycheck on their behalf and paid to the government so this the federal income tax withholdings that they're going to need of course to be reported as well as the medicare and social security that would be reported say on the w twos as well when we think about the quarterly reporting the quarterly reporting reports that's the nine forty one form it reports federal income tax social security and medicare so it'll typically be using the total wages on a quarterly basis and then it it will give information reporting on the federal income taxes and the social security and medicare both the employee and the employee or side the form nine forty is the federal unemployment tax which will typically use some kind of the total wages although there could be caps on it and then we'll have the federal unemployment tax calculation and then of course we got the w twos and the w threes at the end of the year if i go back to the balance sheet note that these accounts on the balance sheet represent the withholdings that we had at the last pay period that we have not yet paid out yet so note when you talk about the payroll periods that happen on a weekly basis biweekly monthly semi monthly then they're not always going to end at you know right at twelve thirty one so you've got some kind of discrepancies in terms of an accrual basis and when the payroll happens and you also then could think about these items as the last the the things that we withheld that we have not yet paid at this point in time this is the last payroll that that happened in before the twelve thirty one twenty four where we made this withholdings and so on for the federal income tax the state income tax and yet we have not yet paid them so you could you know tie out these to basically that last payroll that was was uh was processed to kind of get a better idea of of where the payroll liability is you know at the end of this time frame okay so that's the general idea if i go back to then the report center just realized that some of the detail of this report as you can see is there to support information on the balance sheet and the income statement but also there to give the added reported necessary for like the human resources needs as we report on behalf of the employees on their paychecks as well as to the government so then we got the payroll items detail report if i open that up and say oh one oh one two four to twelve thirty one two four the payroll items are going to be the items we set up within payroll so this is the salary so we might pay people salary but they might have overtime which would be another payroll kind of class that we would put the regular pay so this is not as common a report but if you had an issue between these categories and of course this report could be a useful report to dig into the detail on closing this back out we've got the payroll uh detail review let's open it up and change the dates from oh one oh one two four to twelve thirty one two four uh to twelve thirty one twelve thirty one two four so now you've got by employee so the payroll detail review you've got the salary for our first employee here and then the the advanced earn income credit and the federal withholdings so they're breaking out all the detail for that employee the social security the federal withholdings possibly not the report that would be your first report to open for a summary but if you need to break out the detail by item then obviously a useful report here we'll go down to the california's health insurance the workers comp and then to the second employee so now we're in the second employee you've got their overtime rate the regular pay the sick hourly the vacation all the detail the federal withholding so the medicare so if you had a specific area where you think there's an issue there's something off something's not tying out between the w2 and the and the reports or something then you might be digging down into the detail for that particular employee and this could be a report that would be useful for that you got the payroll transaction by pay e let's open that up changing it from oh one oh one two four to twelve thirty one two four so these are the people we're painting employee development department uh great statewide bank insurance company state fund and then we paid obviously the employee elizabeth greg so the the vendors being who were basically paying out so transaction by uh the pay e who were paying to in other words so detailed report there and we got payroll transaction detail let's open that one up and let's change the date from oh one oh one two four to twelve thirty one two four so now you got the paycheck information so it's giving you the detail for the particular paycheck so this could be useful again if we have a particular issue in one area something's off and we want to drill it down on a paycheck by paycheck transaction so now we can drill down in here and get each of the individual paycheck so we can use that format and then payroll liability balances this would give us the liabilities that are still outstanding uh that still need to be paid generally the withholdings that we had for example on the balance sheet that have not yet been paid payroll item list this will give us not an uh a financial reporting thing but a list of these items that we're using in order to generate the payroll the items being those things kind of like inventory items that we have to set up in order for the payroll to process properly we got the employee earnings summary so let's just take a look at that one employee's earnings summary from oh one oh one oh one oh one two four to twelve thirty one two four so it's going to give us a similar report as the as that first report the summary report but now it gives it in a horizontal fashion salary overtime regular pay this is like a registered format so you might be more used to seeing it in this format maybe than the first one although if you see a paycheck stub it would be in that first format but and then so this is the regular pay and then you've got the federal withholding the medicare the social security the federal unemployment the medicare social security california withholdings and so on and the disability california unemployment california and so on workers comp and the total okay another format to see similar information in a register type of format employee pay adjustments if there are have been adjustments state entitlement report and then you've got some more lists related to employees not really financial reports but informational reports contact information for the employees employee withholding information paid time off lists workers compensation which would be kind of more specific because workers compensation is specific to the particular industry and company typically so you got the reports related to it so a whole lot of whole lot of stuff within the payroll reports clearly