 in this presentation we will enter a journal entry related to the payment of payroll taxes if we scroll up top we can see that we've already had the journal entry for recording the payroll expense and the payroll taxes the employer portion support accounting instruction by clicking the link below giving you a free month 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 for our pay period ending in august we made the transactions in september first now we're going to make the payment we're going to say that that happens on 9 15 in other words we have done the withholdings and process payroll on 9 1 and then we have to pay at some point in the future meaning we're going to pay off all these liabilities here we're going to have that happen on 9 15 note that these two journal entries were created from this one was created from our register this one created from our worksheet so those came from this tab if we scroll back over we have the payroll register here where we recorded our first journal entry which included the total earnings which was our payroll expense where's our total right there and then all the deductions for oast i hi social security medicare f it federal income tax group insurance union dues 401k ticket to the net check then our second journal entry had to do with the employer taxes and from this standpoint you can see that we basically paid the employees 28266 and we took from them all of this in terms of payroll taxes and we don't get to keep it therefore they're currently sitting in a liability then we had to include in our second journal entry our portion of the payroll taxes here those also need to be paid in the future so if we go back to our gl tab then now we're going to pay those out so that's going to be the goal here so when we think of our questions we can think well is cash affected we're going to say yeah cash is affected here's cash it's going to be going down because we're going to pay it but it's going to be our last account so i'm going to put it on the bottom and we're going to work with it last what we're going to do is pay off all these liabilities it's really helpful to be able to see the trial balance because then you can see what is in the liabilities so what we're going to do is just copy these so i'm going to copy the FICA the OASDI FICA and then the social security the FUTTA the SUTA the employer FIT payable all of these are our items we will have to pay they currently have credits in them we're going to debit them to make them go down so we'll copy those right click and copy and we're going to put those up top in B20 right click and paste one two three then we can go ahead and indent that if we choose which i'm going to choose to do so i'm going to highlight these items we're going to go to the home tab we're going to go to the alignment and increase the indenting then we're just going to put the amounts that need to be paid which will be just listed here these these are what we're going to pay that's that's what we owe so we can't use a journal entry note that i can't say this equals negative of that number which we may be tempted to do because when we post it then it'll create a circle reference so if you were thinking formulas would be good here that's good thought formulas generally are good but in this case we can't do it because it would create a circle reference when we post it so what we're going to do is just have to hard code these in here we're going to put them in the debit side here so these are going to be debits so for the fight guys just going to be 606 3.1 for the hi we're going to put this number which will be one four one seven point nine eight for the futa we're going to pick up the futa which is one two five point three eight and then for the suta we have the suta which is eight six seven point five six and then we'll just put the negative sum here so negative sum and we'll sum this up and that's what's going to be here now it shouldn't be going to oh we i missed one sorry about that we have one more the fit so here's the fit which is going to be eight five nine nine point one three then we can do the negative sum and it's going to be coming out of of course at this point cash so cash has a debit balance we're going to make it go down because we're paying cash for all the expenses or liabilities that we owe so we're going to copy this and that will be our credit in the b25 where we will say right click and paste one two three now i shouldn't have indented these because these are these are actually debits so i'm going to highlight these back home tab alignment and decrease the indenting and then this one is the one we want to indent home tab alignment increase indenting okay and then we'll put the credit over here which will just be the sum of these if we select them they add up to 17 73 15 but we want a negative so we'll use our negative sum the plug formula which is negative sum double click the sum function and highlight those cells to get that negative sum of negative or credit 17 73 15 then we're going to post these out so here's the 215 and note to do this we've already got the pains frozen so if they're not frozen and you want them frozen or else it's just a little bit more scrolling you go to cell d1 we're going to go to the view tab we're going to go to the windows group and freeze pains and then freeze pains so then we're going to scroll down i want to pick up this 215 here's 215 there on the journal entry here it is on the trial balance we're going to find it now in the general ledger it's going to be in the same order it's going to be the third liability account so we'll scroll to the right so here's our liabilities looking for 215 there we have it in as8 where we're going to say 915 the date now we're in a t8 where we will say equals scroll down just a bit and pick up that uh 606 3 10 bringing the balance down note the pattern here this one was uh employee portion of social security employer portion of social security then we paid it off so that's that'll be the pattern then we're going to go back down to the left side of the frozen pain scroll right we'll see that that has gone down to zero on the trial balance as well which is nice now we're looking for 220 here's 220 on the journal entry here it is on the trial balance we're going to scroll the right looking for 220 so here's 210 scrolling up by 215 there's 220 so we are here in aw aw 8 915 now we're on a x8 where we're going to say equals scroll down just a bit point to that 1417 98 and enter so same pattern here we got the employee portion the employee ur portion pulling the balance up to the sum of both of those then we paid it making it go down to zero we're going to go just to the left of um the brackets go right and scroll back down and that's back down to zero now we're on futa i think so here's futa uh 223 so we're going to scroll the right so we find 223 which is right here on the trial balance so it's like the middle like right in the middle of our liabilities so there's 210 there's 224 so it looks like it's above here 223 we're in ab7 where we will say 915 and then in bb7 we'll say equals scroll down just a bit and we're looking for futa so there it is and enter so now we've paid off futa notice these all look like accounts payable type of transactions they go up with a credit and then down with a debit we incur liabilities and then we pay them and then we're going to go right to the left of the frozen pains and scroll right scroll back down now we're looking for su ta su ta is 224 here it is on the trial balance if we scroll the right to find 224 to find su ta which is 224 scrolling down a bit here it is su ta we're on ba 21 9 oh is that right yeah that's right 915 tab now we're on bb 21 where we're going to say equals and we're going to point to that nine or 867 56 bring the balance down to zero scrolling just to the left of the frozen pains and going right just a bit we can see that that has now been brought down to zero which is what we expected and hoped for now we're going to go to 225 which is here on the trial balance we're going to scroll right till we find 225 so we're looking for there's 224 225 is up top so we're here in be 7 915 and then in bf 7 we're going to say equals and scroll down just a bit and we're picking up that fit and enter so that brings the balance back down to zero if we do it just to the left of the frozen pains and scroll right we have now brought that down to zero now we just need to post the cash so cash is here in uh in the journal entry it's going to be our first account favorite account on the trial balance although it's going down which we don't like but that's okay we have enough right now so we're going to go over here to 915 we're in al 7 and we're going to say equals and scroll down and pick up that 1773 15 and enter that brings the balance down from 571 733 89 by 1737 to 554 660 we scroll back to the trial balance we can see that that is also the balance on the ending trial balance and now we've paid off all these liabilities note that like when we pay off the accounts payable account there is no effect on net income from this journal entry in other words there's no income or expense accounts here they're all balance sheet accounts so it's just like the liability when we have a payable where we might purchase an expense where we would debit an expense and then credit the payable that's when the expense happened here it happened when we incurred the salaries expense and the payroll tax expense with these two journal entries and then we pay for the expense that we incurred prior to that that's what we do in any payable such as accounts payable such as these items that's typically what happens it's also could happen that we bought inventory for a payable like which isn't that could be a bit different but typically in essence what's happening is when we pay off the liability there's no effect on net income