 X collector and pay it to the federal government. So that would be the general idea. Now note, we could total this up and total down below. Summing this up, summing the gross pays, copying that across, control C, holding shift, right arrow, control V, this would be our total. Now, when we enter the journal entry, we could think of it as a check by check or we could, for example, say I'm gonna use this as my support register and then simply enter the total as if kind of like they were one employee as a journal entry into my account. Those pros and cons of either way to do it, if you were to run this, for example, in a QuickBooks system or an accounting system and use payroll within the system, it would give you each individual employee at which you would need in order to basically verify each employee and make all the supporting records and so on and so forth and track each person's withholdings on a year to date basis and on a check by check basis and so on and so forth, provide the payroll stubs and all that kind of stuff. If you had a third-party provider do the payroll and then you were taking their payroll and putting it into your accounting system, they might provide you something like this worksheet and they might do the backup work like that and then you might just enter it in with one journal entry which would be a lot easier, although you do also still have to be careful of the complication that this will be touching the cash account. So if you put this in as a journal entry with one lump sum into the cash account, you're gonna have to, when you reconcile, see the fact that it's gonna hit the bank account and these two numbers, which might not be too bad to kind of figure out, so you can kind of work it in that way as well and oftentimes if you were to do that, you might then have a separate payroll account that you put money into just for payroll and then take the money out so that you can reconcile easily and be able to verify and check if there's any kind of problems to it. So you also might have another check figure at the end here. You might say you can also do it this way. This equals this number minus the sum of these so you can calculate that last number two different ways. And then we're gonna have the employer taxes. So we're gonna have to pay our taxes over and above the employee taxes. So we got now employer tax and that's we're not gonna pay FIT or we don't have to match that but we do have to match social security and we've gotta match the Medicare. We also might have on the federal side of things federal unemployment tax but I'm not gonna add that because there's a small cap. It's usually a lot smaller of a dollar amount and the cap gets a little confusing on it as well. So we're gonna keep it at these core payroll taxes. So let's go ahead and then let's put a total over here to total this up. And then I'm gonna make this outer column. We're gonna make this black, white. Let's center it. I'm gonna make this whole thing black and white as well. And then we've got our two employees which will be Adam and it will be Erica. We're gonna bring down the dollar amounts and we're just basically gonna match social security and Medicare. So social security will match. Social security will match and then Medicare we will match. And Medicare you can think of it as basically matching kind of like a 401k. That's kind of how they thought about it when they put the law into place and whatnot. So now we have to pay these amounts over and above the actual gross pay basically paying kind of an income tax on the employee's income even though their income is income that we paid them and we're paying like taxes on the income that you know you anyways, we're then gonna sum it up over here. Sum it up over here and sum it up over here. And then we can then take the total total sum in this up and tote towel copying this and pasting it across. And then we can also double check this way, summing up this way too. And we should get that to that same 474 as well. So what's gonna happen then when we record this into the system we're gonna say we could look at it in total the employees in total earned 6983 but they're only gonna get the 5429 that's how much is gonna decrease the checking account but it's gonna be in two separate checks. The difference is gonna increase the payroll liabilities FIT social security and Medicare. Then we're gonna have to pay over and above on top of that the employer taxes which we have generated or incurred at the point in time that payroll happened but which we have not yet paid so cash isn't affected at the point payroll is processed for these taxes instead they're gonna increase the payroll liability and record the expenses payroll expense. Okay, so that means the total payroll liability we can put down here. This is gonna be payroll liability and we're gonna say that we're gonna have FIT we're gonna have social security social security we're gonna have Medicare we're gonna have the total and let's do some formatting on the black and white here black, white and let's center and let's format these as black and white and then we'll just call this payroll payroll liability. Okay, so the FIT is just gonna be the employee the employee tax it's not our tax the social security is the employee tax plus the employer side the Medicare is the employee plus the employer side summing these up is gonna be this way you can't double check by adding these two because you have that FIT which is, you know, you have a difference between the two. Okay, so now one more time one more recap on this what's gonna happen in total we can say our employees are gonna earn 6983 which is gonna be a debit to the expense account payroll expense that they have earned but they're only gonna get 5492 meaning the checking accounts gonna be decreased with two actual different transactions that will hit the bank statement of 5492 the decrease to the checking account the difference is what we had to take from the employees or never give them even though in theory they earned it so we can pay it on their behalf to the government so that's gonna increase a liability account payroll liability. In addition to that by us processing payroll we have to incur taxes on ourselves as the employer basically because we have employees so we gotta pay over and above what we pay the employees basically paying tax on their earnings that we paid them in essence and so that we're not gonna pay yet at the point in time we process the payroll we are instead gonna be recording the expense of the tax expense and increase the liability that we're gonna pay in the future therefore the liability that we have piled up that we're gonna have to pay to the government from this transaction is FIT which is just the employee side that we took from the employee or in other words withheld from them the social security which has an employee and an employer portion so half of what we are paying in essence came from the employee and half of it is our portion same with the Medicare so this is what we would expect the total liability to be that we will have to pay. Let's go ahead and delete this last column and do some formatting right click and delete this column let's make this blue and bold I'm gonna select all this stuff and hold down control and hit that one making this blue if you don't have that blue it's in the more colors and that blue right there and bordered it blue and border blue and border border blue border blue so blue and the border and then this one also borders and blue okay so then next time we're gonna use this information to make the journal entry that we just talked about this time