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