Chap 8

Payroll Items

compensation, payroll taxes & withholdings created by QuickBooks that you can customize or add to; each requires identifying the related liability accounts, expense accounts, & government agency

government agency

included in the Vendor Center & selected when creating a new payroll item identifying the entity to which the payroll liability is paid

payroll

involves computing each employee's gross earnings, withholdings & deductions, & net pay; preparing paychecks or setting up direct deposits; recording payroll journal entries; & submitting payroll withholdings to the appropriate agency

Social Security and Medicare

payroll items that require identifying two liability accounts & one expense account in the Payroll Item List

Social Security tax, Medicare tax, federal withholding, and state withholding

payroll taxes imposed on the employee & collected by the employer

Payroll Liabilities and Payroll Expenses

two default general ledger accounts created by QuickBooks when the payroll feature is activated

Payroll Item List:

Contains a file for each type of payroll item that affects the payroll computation.

Social Security tax, Medicare tax, FUTA, & SUI

Payroll taxes imposed on the employer

QuickBooks Payroll Services:

a variety if services offered by QuickBooks; included automatic processing of payroll & requires a monthly service fee