 And now we're just going to go into pay my team. Now processing the payroll can be a little bit complicated in a practice problem depending on what the date you're working in is because it's kind of hard to work in the past and in the future with the payroll because typically payroll is set up to be working in real time in the current time. So if you're working in this problem far into the future or something like that and you want to test out the payroll, you might have to be somewhere in the range of when you're working the problem in order to be able to practice with the payroll. That said, we're pretty close here. So we should be okay. So we've got the balance. It's going to be coming out of the checking account. Here's the balance. We got the pay period and we're talking one one to one 31 because we're talking a full month. We're saying that we're paying people monthly. The pay date happens to be the same day as the end of the pay period. That's not always the case. It might be for some people that oftentimes and actually that you might have the pay period end on the 31st and you might then have a couple of days before you actually process the checks to make sure that you can get everything processed. But we have it on the same day for our practice problem here. And then down below the people were paying. We had Adam that we set up as a salaried employee and and Erica Smith. So salaried employee. I think we said like 55,000 a year, which comes out to 4583. Let's just double check that. If I pull up the trustee calculator calculator, where are you? It doesn't. Here it is. Okay. We can say I paid 55,000 divided by 12. There's where that number comes from. And then Erica, we need to put in the hours in order to process the check here, which we could do in this outer field. But I'm going to go into the to the check because I'm going to make some changes to line it up to kind of our generic practice problem. So if I want to see the detail, I'm going to go into the pencil here. So we'll go into the pencil. Here's the information. So Adam, here's the, the location, the address, the pay period, and the pay date and so on. So we have the pay at the 458333 and then the employee taxes. So these are the withholdings from the pay for the employee taxes. Now I'm going to change some of these here. This is being generated directly from what we put in that we would have gotten from the W4, but I'm going to put my own information in here to kind of match the practice problem that we put together and match, you know, our bank reconciliations. So I'll give just a quick recap on how this would work. The federal income tax is not our federal income tax as the business. We pay taxes to as the business owner, but this is the employee's federal income tax that they would pay that's going to be reflected on their form 1040 that we are withholding from them. The federal income tax is quite complex due to the due to the progressive tax systems and all the different deductions and whatnot. That's one of the primary reasons you pay for payroll because you have to get the information from the W4 and then go through this complex calculation to get the federal income tax, which is useful to have a computer to do oftentimes, although you could look it up on a table. So but I'm going to just tight. So I'm just going to make up the number here at 720 to match the practice problem. Now these other two down below are automatically calculated and they are usually more of a flat tax. So they're going to be a lot easier to calculate and notice that are kind of hard coded in here. They won't even let me change it because if I take the 4583.33 the gross times the .062 I believe it is and that's where we get the 28417 that's the employee portion of social security that they're paying into and then if I take the 4583.33 times .0145 that's where you get the 6648 the Medicare and then the California tax. I'm going to try to say that I don't want the California tax because I'm making it a generic problem. So now we have then the 720 plus the 284.17 plus 66.45 that's the total of 1070.63 minus the total check which is the 4583.33 minus the gross pay. So 4583.33 minus the 1070.63 would mean the net check at this point of 3570 and then we've got the employer taxes. These are the taxes that we're going to match on our side and that's going to be the social security. So we're paying over and above. We're basically paying taxes not on our income but on an expense the amount that we're paying the employees of that 284.17 the 66.46 it's designed or it was designed to look kind of like our retirement kind of setup right they put money in and we kind of like match it down below. Now normally you would have another one that we turned off which was the FUTA federal unemployment tax act and but it's usually fairly small and it has a fairly low cap. So we took that out and that would be the federal taxes and that one is only on the employer side not something that's being taken out of the employee wages and then again if you had any state taxes you could see the California income tax here if that was applicable but we're going to make it generic and then if you had any non-required withholdings voluntary withholdings they like benefits they would be up in here as well. So that's going to be the the general idea what's this going to do when we actually record it it's going to record a paycheck the paycheck is going to decrease cash by what we calculated here the 3,512.70 and then it's going to increase an expense of the 4,583.33 because this is what they actually earned even though they're only going to get the check for that 3,512 and then the difference is going to have to go to a payable so we're going to have a payable for everything that was withheld this 1070.63 that we're going to have to pay to the government because that's why we we took it from the employees or never gave it to them even though in theory they earned it and then we've got the social security which is also going to increase another expense account which might be payroll tax expense or combined into the same payroll expense and the other side of that is also going to go to a liability so that we have to pay our portion of taxes on the employee wages. This is the transaction that would happen on an employee by employee basis and we can think about the same transaction happening in aggregate as if all employees were like one employee filing or processing payroll for one time frame. So let's save this one I think this one looks good I'm going to say okay let's save that