 QuickBooks Online 2022. Pay payroll taxes. Get ready because it's go time with QuickBooks Online 2022. Here we are in our get great guitars practice file we set up with the 30-day free trial holding down control scrolling up a bit to get to the 125% currently in the homepage it's otherwise known as the get things done. There to the accounting view you can change to the accounting view it's something you can do by going to the cog up top and the switch to the accounting view down below. We will be toggling back and forth between the two views either here or by jumping over to the sample company currently in the accounting view. Back on over we're going to open up a few tabs up top by right-clicking on the tab up top duplicating that tab. We're going to do this a few more times so that we can put reports into these tabs. Right clicking on the tab up top duplicating again back to the tab to the left right clicking on it again duplicating again as that is thinking we're going to jump on over to the sample company to note where the reports are located in the accounting view left-hand side reports right there going back to the business view we're on the second tab finding the reports it's in the business overview and then in the reports section closing up the hamburgers no introduction the balance sheet we're gonna do a range change up top mode 101 2 2 2 12 31 2 2 run it tab to the right and now we're going to go back into our business overview close up the hamburger because we're in the reports area open up the income statement profit and loss p to the L range change from 0 1 0 1 2 2 2 0 2 28 2 2 we're going to change it to the month so we can see the side by side the months of January and February there we have it the Jan the Feb the tote going to the tab to the right we're going to go to the business overview and do this thing one more time reports this time closing up the hamburger and typing in trial balance to trusty TB balance sheet on top of the income statement great report to be working with range change up top from 0 1 0 1 2 2 2 12 31 2 2 and running that one now we want to take a look at paying off the payroll liability so to think about that let's go to the first tab here holding control down and just think about what happens in general when we process the payroll when we process the payroll we were basically paying the employees that's going to be a decrease to the checking account but we we only decreased the checking account minus the withholdings so in other words we had a gross amount that we were owing them we took out the withholdings and then we only gave them the net check increasing a liability account down here which we just put into place as the payroll liability for the amount that we withheld for on the federal tax side federal income tax for the employee not our federal income tax that will have to pay on our wages depending on the type of entity we are in and then social security and Medicare then we also had our portion of social security and Medicare that we had to pay over and above which we have not yet paid but have increased the liability account for which we're going to be paying at this point we would have the same kind of liabilities for other types of things that we would have to pay out if they have voluntary withholdings for things like like health care plan 401k plan and so on and so forth so we've got two months of payroll here because we set up the payroll in our system on a monthly payroll set up note that you might set up your payroll more likely on a weekly bi weekly or semi monthly but you know that's going to be a personal choice for the organization we're on the monthly basis so we're not running payroll all the time in our practice problem and we have two months of payroll that have been processed I want to now take that payroll for the first month and pay it pay it out to the government which is going to leave us with the second month of payroll that we have not yet paid at this point in time so if I go into this for example hold control scroll down just a bit we've got the January payrolls that took place down to here and that gives us our total that we owe as of the end of January after processing the January payroll which for us was just one payroll of 2028 46 that's what we're going to pay now by the end of February now again remember that you in practice you need to be in compliance with whatever the rules are for when you pay the payroll in your personal basically circumstance for both the federal side and the state side but the general idea would be that you and most of this stuff by the way would also be a help and set up as you set up the payroll because QuickBooks is getting better and better at automating a lot of this kind of stuff and these due dates and when things are going to be due for the payroll to be processed and so on but the general idea would be that we're gonna we're gonna process the payroll we're gonna take the money from the employees or withhold it we're gonna owe then and increase the fact that we owe our portion of the payroll we're then gonna pay it at some range after the payroll period in our case we're just imagining that the January payroll we're gonna pay the liability by February and then February's liability will pay in March and then we're gonna have to report and double check that everything has done been done in essence properly with an information report typically done quarterly that being the 941s at the end of each quarter and then the 940 at the end of the year which is for federal unemployment tax and then of course the W-2s and so on and so forth okay so we've got the 2028 that we need to pay now normally if I was to do this if I go back to the first tab we can say that we would be going down to the payroll area and we would set up our payroll information notice we didn't set up everything for payroll in our practice problem we set up enough to kind of process the payroll but we don't want to actually give live payroll you know deposit accounts or electronic payments which is typically how you have to pay the government these days with the with the actual payments so we we didn't set up the whole thing this is the employees let's look at the overview up top and so if I scroll down we didn't set up things like the 401k it's not a why we might not have a 401k but workers comp we didn't we didn't add that for a practice problem filling your tax information contact your bank and sign into your tax forms so to do that to finish that up and make it all automated we would have to have you know the actual number a live number possibly for the organization and then the system would typically be taking care of the actual processing of the payroll which is something that the iris wants more and more on like an electronic kind of basis so generally within the setup process if you set everything up properly then you can process the payroll as we have done in the past which will increase the liabilities as we've seen here and then QuickBooks will be able to basically do an automated kind of process decreasing the payroll making the payroll payments to the proper financial to the proper government entities the government for the payroll liabilities that have been withheld now we can't do that so much in the practice problem because we didn't we're not going to set up the live numbers or have an actual connection to the to the irs or anything so it's not going we're not going to be able to process it kind of using the same type of system but that would be the general idea of it what we will do then of course to simulate this is we're going to basically just do a a check that will write and from a from that standpoint it's the same as any other kind of liability account just like we saw in accounts payable just like we saw in the sales tax we have this this liability account that's increasing it's increasing in this case in a more complex way than for most other liability accounts like accounts payable it's increasing because of taxes which can be quite confusing but once we see the pattern in terms of it increasing and when we have to pay it then the idea is of course we have to pay it we just got to know what's the schedule for paying it and in this case we're going to imagine that our schedule is the payroll that reprocessed in january the liabilities that were accrued from that are going to now have to be paid in february the ones that were accrued in february are going to have to be paid in march and so on and so forth if i go back to the tap to the left if you had the payroll turned on and everything set up you can also go down to your taxes area on the left hand side and take a look at the payroll tax information here as well but again the practice problem we can't really we can't really process it in that way so we're just going to write a check for it so i'm going to go back up top and i'm going to actually do this with three checks because that's how i have it in the practice problem so we're going to do a check for the three types of payroll that we have that are liabilities that's going to be the fit the medicare and the social security i'm not going to spend a lot of time kind of tying into why that is but just i mean you could go in and figure that out in terms of what was the total fit because those are the withholdings for the two employees social security and medicare were withheld for the two employees and you have the employer portion basically doubling the amount of the withholdings so that's what should be making up the check amounts that we're going to be processing at this point simply with a check again remember in practice you don't typically want to process just a check this is just a simulate or mock the process that's going to happen in practice you want to set up the payroll properly so that you can pay the iris the way they want to be paid for the payroll which is some kind of electronic payment system typically okay so this is going to be going to i'm going to call this irs i'm going to make three separate vendors for it irs f it federal income tax i'm just making up this vendor tabbing through it and we're going to say that this happens on 228 0228 222 and i'm going to say that this is going to be uh 24 on the check number because i messed up the check numbers when we did that last thing for the adjustment last presentation i believe and then i'm going to go down here with the category and say this is going to go to the payroll liabilities now i'm in that funny business view and this is the part i don't like with the business view because they don't give me the type of accounts on the left hand side but i'm not adding any new accounts i'm going to try to to stay here with the business view and hope it doesn't drive me crazy the business view tries to drive me crazy payroll liability and i don't want to go to crazy i don't want to go to crazy i've got my own car payroll liabilities right here we're going to go down to the federal taxes that's the one we want so it's a sub account i think that's it i think that's it and so we're going to say that the amount for this one is going to be for 1080 it's not going to be billable or taxable this will of course decrease the checking account the other side is going to be decreasing the liability account of that payroll liability i'm going to do two more that are basically going to be the similar in nature so let's save and new and let's say the next one the next one is going to be i'm going to call it irs medicare which i probably misspelled medicare medicare tab adding that vendor cash and that looks good check numbers back on alignment and this is going to be payroll payroll liability account scrolling down we want that federal taxes let's pick up that one that's the one this one's going to be for 82.52 82.52 and let's do it one more time uno base mas and we're going to say let's do this one for irs slash dash social security company social security let's just say social security and then save it and bring this on down check numbers now lining up as it should this is going to be payroll liability payroll liability payroll liability there it is and this one's going to be for the amount of eight six five point nine four eight six five point nine four so three checks that are breaking out the payroll liabilities for the three kind of components for the withholdings and the employee tax is a payroll for the first payroll process in january okay let's save it and close it this time and then let's go ahead and check it out save it close it balance sheet to see what those balances are at this point what do my balances stand i'm not balance sheet run it we're going to go down and take a look at those checks we can see the checks are going to come out of the checking account so let's check it out holding control scrolling down we got the three checks down here now normally if you process through the the payroll processing item then these checks would be specially labeled not just as a check but as kind of like the special check which would be you know a payroll check so that's one of the benefits of using the little widget kind of like like the payroll check here to be like a liability i think they call it like a liability check so we got this one we've got this one and the payroll liability and then is that's a payroll liability where's the third one here it is and here's the third one so there they are a lot of stuff happening on 228 i probably should have spaced it out a bit more but that's okay i'm going to go back then to my balance sheet back to the balance sheet the other side is going to be in the detail for the liability account we're now left on the liability after 2076-44 which is going to be the liability for the second the second month or should be by go into this holding control scrolling down we then can see the detail which is what we want to see this is the payroll liability account so if we pull up the trustee calculator and try to find our three checks here here's our first check went to the payroll liabilities which was the one oh so this can be the one oh eight oh and then plus we have this one that we paid which was for the medicare at the eight two point five two and finally we had that eight sixty five for the three checks here so that's going to be eight six five point nine four that adds up to the 2028 which represents our liability at the end of january so if i go through and say january we owe the liability due to the withholdings of the employee and employer portion of that 2028-46 and then we basically paid it in february we did it with three separate checks for the three components of the federal taxes but that's the general idea that we would have and then of course we're left with the liability that has been incurred for the month of february which we will then pay at at the at march in march that's the general the general idea of the process and then of course once we do that then you can see that now we're actually making the payments actually the pay after the payroll was processed fairly close usually to when the payroll was processed so when we actually file the forms which would be the 941 forms typically done on a quarterly basis they're kind of like what the form 1040 for individual taxes should be in other words the form 1040 you can see was kind of designed to be like a like an informational return in other words the government if you're familiar with your individual income taxes with your withholdings for your w2 wages the government wants to get paid in the same year as you earn the revenue even though that's really complex to do for for your normal your 1040 kind of taxes because you have a progressive tax system you have a very complex kind of structure with dividends and with the credits and so on that's why you try to overshoot and usually when you file the tax return by April 15th or whatever of the following year you're usually hopefully trying to get a refund because you couldn't get the actual payments correct it's impossible because it's too complex so you shoot for a refund to avoid penalties and interest when you're looking at the payroll forms it's a little bit different but you have a similar concept the concept being the iris wants to get paid as you go so we withheld the taxes and then we paid the taxes but it should be a little bit less complex because we have a more of a flat tax kind of system that we can basically work with and that means that we're going to when we file the informational returns instead of on a yearly basis on a quarterly basis at least for federal income tax social security and Medicare then it should be just an informational return in general we're going to say hey look these are my total taxes that I owed for this time frame for these three months and this is what we already paid hopefully those two things should tie out and you don't actually owe anything you're not going to get a refund at the point in time you file the quarterly 941s because everything should be working out and tied out at that point in time okay so that's where we stand here so let's go to then the the trial balance hold down control scroll up just a bit let's run this thing making sure we're looking at fresh numbers and this is where we stand the left leg the right leg the debit the credit and if your numbers tie out to this great if not then try a date range change it's often a date issue and we'll be running a transaction detail report at the end of the section to diagnose any differences