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Manual Payroll Entries

If you live elsewhere than Canada or US, the following are the basic set of accounts and entries needed to enter employee payroll and remitting taxes to the government for every pay period. If you are in the US, check Manual Payroll Entries for US and if you are in Canada, visit Manual Payroll Entries for Canada.

 

Please note The entries may vary country by country and revenue department of most countries do provide online calculators. Please visit revenue department website or contact your accountant before making any entries.

 

 

Accounts needed for Payroll Entry

You need specific COAs to do any payroll entries. If you don't have these already, create the following Chart of Accounts before you make any entry.

 

 

 

Payroll Entry

 

1. Go to Transactions and click Others.

 

 

 

 

2. Click Manual Voucher.

 

 

 

3. Click Add New.

 

 

 

4. Enter a Reference. For Reference, you can enter your employee's name and the Pay Period.

 

5. Select the Date for which Payroll is created.

 

6. Start entering the information as mentioned below in Details.

 

  • Line Item 1: Payroll - Total Salary as Debit
  • Line Item 2: Payroll - Total Employer Contribution as Debit
  • Line Item 6: EI Payable - as Credit
  • Line Item 7: Tax Deductions - as Credit
  • Line Item 8: Other Benefits - as Credit
  • Line Item 9: Bank Account Name where the Payroll will be paid from - as Credit

 

7. Once all the information is entered, click Save as Draft or Post.

 

For example, We are entering payroll details for Dessy Rodriguez. Her gross pay is $1000.00 with following breaks: and company owes $25.00 in Tax Deductions and $25.00 as employee portion of EI (Employment Insurance).

  • An employer owes $25.00 in Tax Deductions.
  • The employer portion of EI (Employment Insurance) is $25.00.
  • Employee's portion of EI (Employment Insurance) is $25.00.

 

 

 

Please note Selecting Default Reference will fill in the Description fields with the text as entered in Reference.

 

 

Employer Remittance

You can record the Employer Remittance as described below:

1. Follow Steps 1 - 5 as mentioned above in Payroll Entry.

 

2. Then enter the information as mentioned below in Details.

  • Line Item 1: EI Payable - as Debit
  • Line Item 2: Tax Deductions - as Debit
  • Line Item 3: Medicare - as Debit
  • Line Item 4: Bank Account Name - as Credit

 

Please note Selecting Default Reference will fill in the Description fields with the text as entered in Reference.

 

3. Once you enter all the information as mentioned above, click Save as Draft or Post.

 

For instance, Employer Remittance for Dessy Rodriguez for June 2016, will be entered the following way:

 

 

Please note

If you have more than one employee, you will have to get the total amount for Tax Deductions and EI Payable amounts from Current Liabilities.

 

  1. Go to Reports.
  2. Under Position Reports, click Balance Sheet.
  3. Go to Current Liabilities.

 

 

Last but the most important step, remit the Total Employer Remittance amount to appropriate government authority.

 

 

 

 

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