HI Guys, currently I have 2 employees that are being paid a salary, for 2023 we hired a payroll company that takes care of payments and calculations. All payments are deducted from my bank (broken down into different amounts) and are imported into manager, so since i new to manager. id like to ask if i should use and enable employees and payslips to record these payments, if not what would be the best practice?
For 2024 we changed to a new payroll company, and with this one Withdrawal the payment in one BIG TOTAL amount except taxpayment, but at the end of the day it still needs to be broken down when entering record into manager. I am just curious reading the forum some people dont use payslip and they recommended using thirdparty payroll company?
thanks guys for the support.
HI @eko the withdraws include expenses (wages and salaries account) and deductions such incometax (liability) so i will still need to enter those broken down amounts per employee paid into manager.
see how how these withdraws are being shown in my bank account activities
You are using Payroll companies and as such these should handle in your area (California) the following:
The entire spectrum of compensating employees for their work. This includes calculating the total earnings for each employee, handling deductions, submitting necessary reports, navigating payroll tax procedures, and ultimately distributing payments.
So as I mentioned in Manager you can just use the payments to the processors in expense accounts as they handle all including the tax liability and payment. When your company gets audited you can use the Payroll processors data.
@Shootify you keep asking questions on this forum that are more book-keeping and accounting questions then about Manager use. In several different topics that you created you were asked to solicit an accountant. This will be my last reply to you that deals with accounting.
@eko, I have asked an accountant how to proceed and was told to enter expenses as expenses and liabilities as liabilities when importing into manager, which means a lot of data entry (same thing as enabling payroll), so i am trying to get feedback from manager users and see you just told me something new, assign all withdrawal amounts to an expense account? books will not be accurate though as i will be assigning liabilities as a expense, are yo doing this yourself?
You are really not reading my answers. A payroll processor takes care of all including payments to employee and tax authorities if applicable (so they manage the liability and payments). You therefore do not have to run payroll yourself but just record all the payroll expenses even if in summary as one expense to payroll processor. The details of who got what is contained in the Payroll processor system.
This is similar to using a separate POS system for inventory and sales and recording totals in Manager for accounting purposes. The track and trace an auditor may need includes the POS application as in your case it would include the Payroll processing records.
I have nothing against noob questions when related to the functioning of Manager. The question how to account in any accounting program like Manager for outsider payroll processing could easily be answered by your accountant as I did. Your accountant is right in general to put expenses as expenses and liabilities as liabilities, but I wonder if you specifically asked how to deal with accounting using outside payroll processors.
It is a good choice to outsource payroll although for only 2 employees I probably would use Manager and not bother with outsourcing, depending on the complexity of the Payroll system and the fees of the processor. If the advise from your accountant regarding this specific question is as vague as you describe then maybe time to look for another one.
agreed,
Here in California payroll is quite complex, especially for someone who has no experience, so I rather hire a payroll company to handle this, it’s not expensive, so it’s worth it.
I just created an expense account “payroll processors name” drop the withdraws there.
@shootify it appears to me from your bank withdrawal summary that all withdrawals relate to the employee net pay and payments to taxing authorities on behalf of the employee. I see no requirement for you to record any liabilities. All withdrawals are are part of salaries and wages. Your payroll company would be preparing payslips, tracking liabilities for employee taxes and paying the taxes on your behalf. To you, all payments made on your behalf are just wages and salaries.
