QuickBooks Pro

Suggested Solution for Payroll Setup in Bermuda

Direct Payroll Liabilities assignment approach

1. Turn payroll feature off: Edit\Preferences\Payroll & Employees\No Payroll.

2. Add your Employees to your Employee list.

3. Set up an expense account for payroll expenses, Payroll Expenses and a subaccount for payroll wages and salaries:
• Wages & Salaries Gross

4. Set up an Other Current Liability account Payroll Liabilities (if not already there) for all employee-paid deductions, whether they are taxes or benefits, that are paid later and subaccounts for each type of payroll deduction:
• Payroll Tax
• Medical Insurance
• Government Pension
• Employer's Pension

Setup an Other Current Liability subaccount (subaccount of Payroll Liabilities), for the portion of the payment that is the company expense:

• Company Payroll Obligations

5. Set up an Expense account, Company Paid Benefits for the portion of the payment that is a company expense.

6. To pay employees enter employee paychecks in the Write Checks window (Banking\Write checks). On the Expenses tab, enter the gross wages on the first line. Enter a separate line for each type that the employees paid for as deductions (with a minus sign). Assign your payroll liabilities accounts as the accounts for each type the deductions.

7. Use your Company Payroll Obligations subaccount for the company deductions (with a minus sign).

8. Use Company Paid Benefits expense account to assign charges paid by the company.

9. When you enter a payment of taxes or benefits, use the Write Checks window. Assign Payroll Liabilities subaccounts for the expense accounts.