QuickBooks Tip - Child retain Garnishments

QuickBooks Tip - Child retain Garnishments-Salary Garnishment

How to set up, track and pay Child preserve Garnishments in QuickBooks seems to be a pretty favorite topic of discussion, I see this query frequently on many of the QuickBooks forums and news groups that I frequent, so here is a little tutorial for setting up a weekly Child preserve Deduction.

Salary Garnishment

Quick Facts About Child preserve Garnishments:

• Child preserve is a post (after) tax deduction from the laborer paycheck.
• It is potential that you will have more than one laborer with a Child preserve Deduction.
• It is standard to have laborer specific deduction items in your Payroll Item list.
• It is not needful to have laborer specific liability accounts on your Chart of Accounts.

Creating a Child preserve Garnishment deduction item in QuickBooks is pretty easy.

• From the Lists menu -> select Payroll Item List
• Click on the Payroll Item button (lower left) -> and select New
• Select the Ez-Setup method -> click the Next button

• Select the Other Deduction choice -> and click the Next button

• Check the Wage Garnishment choice -> click the Next button

• Enter information about who the money is sent to (this is a QuickBooks vendor), the catalogue number that must be displayed on the check, and how often the money must be sent in -> click the Next button and then click Finish.

At this point QuickBooks has created a payroll deduction item in your Payroll Item List called Wage Garnishment.  You will probably want to edit this item, changing it's name to something more meaningful - maybe something like laborer X Child preserve Or laborer X Cs.

• Go to Lists -> Payroll Item List -> find Wage Garnishment and double-click on it to Edit.
• In the Enter Name for Deduction field (it will say Wage Garnishment) just type in laborer X Cs -> and click the Next button

• For the liability account, make sure that you opt (or create) a sub-account of the normal Payroll Liabilities catalogue - a quick trick to add a subaccount right here on this window is to first opt the standard Payroll Liabilities account, then click into the box and type in ":Child Support" (without the quotes), you will immediately be told that the catalogue doesn't exist and you should opt Set Up; generate the catalogue and then opt it.
• Keep clicking the Next button on the following windows, changing nothing, until you arrive at the last window; where you will opt Finish.

Adding the Child preserve Garnishment to the Employees Record

• From the laborer Center, find and Edit the Employee
• Switch to the Payroll & recompense section by using the convert Tabs drop down menu
• Click into the Additions, Deductions & business Contributions section, and in the Item Name column, opt the deduction item, and give it an amount.

Each week when you run payroll, the specified number will be deducted from the employees paycheck and sent to the Liability catalogue and will be shown on your Chart of Accounts or a equilibrium Sheet Report.

To of course generate the check to be sent to the department collecting the money, you'll go to the Payroll Tab of the laborer center and opt it from the Pay Scheduled Liabilities section.

I hope you find this written tutorial helpful, if so please leave a comment.

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How To Pay Employees With Cash In Quickbooks - Best Way To protect Your enterprise

Sometimes businesses need to pay their employees with cash, verses issuing a paper paycheck. There are a integrate reasons the company may want or need to do this:

• The company is having cash flow problems, and paying employees from cash is easier to manage.
• The laborer may not have a bank account. Cashing a paycheck is difficult and/or expensive, and direct deposit is not an option.

Businesses should never naturally hand employees cash for work performed. There must some type of paper trail to prove:

• in what manner the laborer received the funds
• when the laborer received the funds
• how the gross pay was computed
• what employment taxes were withheld from the pay; gross pay vs. Net pay.

Every singular one of these is a inherent issue that could arise in the event that the laborer disputes the pay, or in the event of a employment tax or work comp audit.

Here is how to pay employees with cash, while still protecting the company from inherent problems:

1. The company must be set up with some type of payroll service. Whether QuickBooks must be enabled to achieve payroll, or an outside aid should be used. Whether way does not matter, but somehow payroll taxes, etc., must be computed correctly.

2. Generate a paycheck in the general way, using the checking catalogue to draw from, or a special checking catalogue for payroll, if you have one.

3. Have the employees endorse the checks - he/she is signing it over to you.

4. Pay the employees cash. It must be the exact amount on the checks, to the penny. No fudging here! This is important, because the cash paid out must reconcile to the check amounts. If the amounts are not exact, it will be difficult to reconcile them.

5. Take the checks to the bank and deposit them back into the checking account. Don't void them in the software. Although voiding them has the same net ensue on the bank balance, the accounting software cannot compute the gross pay and payroll taxes correctly if they are voided.

Another alternative is to naturally Generate "dummy" checks on blank paper. Make sure the employees put their signatures on them. Pay with cash, to the penny.

The employee's signature on the paycheck or "dummy" check is crucial - this way, the laborer cannot claim he/she was not paid.

Following this method, you are naturally cashing the employee's paychecks for them. This leaves a very good paper trail for your accountant or auditor to follow. All things is clean, above-board, and easy to understand.

My thanks goes to Suzanne Mead, Certified QuickBooks ProAdvisor over at http://forums.quickbooksusers.com/index.php, for this perfect tip. Thank you Suzanne!