Hey, it's Candus and in today's QuickBooks tips and tricks,
you'll notice,
I have a bit different backdrop
and that's because I'm in transition. But I wanted to create this video for you.
Someone in our community sent me an email asking about payroll liabilities and
this is a common question
that people ask, it's a common worry that you're gonna pay your taxes wrong because of
fees and all that. Now, what I'll say is take a breath,
we'll figure it out.
The
there's a lot to learn about payroll taxes.
So today, I'm just gonna teach you a couple of reports to pull
and how to actually pay the liabilities.
But I have recommendations on how to set up your payroll liabilities,
to make sure it's being done, right.
Like how to do quarterly reports, like all of that,
and I was thinking about doing a webinar.
So if you're interested, there's a link below.
Go ahead, put your name and email and when I get ready to do it in the next probably month or so,
I will send you an email, you can register for it
all that good stuff, I'll let you know as it comes along.
But
I want to create a video for you today, I'm gonna make it super simple,
just a few clicks.
And just trust yourself be patient.
As always, if you really need help like setting up and customizing your payroll,
before I do my next webinar,
there'll be a link below where you can create do a strategy
call and I can help you with your QuickBooks as much as possible.
So let's jump right in. Here we go.
So the first thing I'm gonna teach you to do is don't just
assume that QuickBooks is set up properly,
or that if you just go in and pay your liabilities,
through the pay liabilities in the employee center, that it's gonna be right,
the first thing you want to do is go under reports,
employees and payroll
payroll summary,
that's the first report that I recommend pulling,
then you're gonna pull that report based off the period of time you're paying,
whether you're paying every month,
every couple weeks,
every quarter,
whatever it is, you're gonna pull it that way.
So this is a sample
payroll sample file that I created.
So I'm gonna do, since we're in the month of March,
I'm gonna do for the month of February.
Typically, when you're paying your payroll taxes,
unless you're checking your percentage that you are getting withheld,
you don't have to worry about that.
I typically recommend going over here to show columns,
dropping this down and clicking total only,
then
I recommend printing two copies, one for your federal and one for your state.
I'm a paper person.
So if you're not into having paper and you want to do PDFs,
save PDFs, whatever you want,
but my recommendation
is to print it,
then
I always use a pink highlighter and a yellow highlighter,
use whatever colors you want.
I typically use yellow for federal,
and pink for state.
So what I do is I,
I'll highlight, I'll take one of the copies, I'll highlight
federal withholding,
your Medicare,
your Social Security,
and I do the medicare and social security for both sides.
You'll notice,
there's one here.
And there's one here at the company side and the employee side.
I highlight those I add them up
and because I use EFTPS.
When I'm adding them up, I do one line I,
you know, we know what federal is.
But I add the two Medicare's together,
write that down,
add the two social securities together,
write that down
and then I total them
so that way, when I go into the EFTPS system,
I already know the requirements, it's gonna ask what's the 941?
What period of time? Right, we know that.
That's what I do,
then I will take the state
and I highlight the state and if you're in the state of California,
which is where
I live and what I teach, typically,
I do help people in other states,
but
my specialty is really in the state of California.
So what I do is I take my pink highlighter on a separate page,
and I highlight them.
The reason I print two copies is, I recommend having two
file folders,
one for federal, one for state.
Okay, so that's the next step,
then what I recommend you do
is go in and print one more report.
And that report is gonna be your payroll liability balance,
you can either
print it just for the month,
or you can print it for the total,
verify
with your highlighter that these totals also match your state.
So
print two of each,
highlight them, verify, make sure
because the
payroll summary comes actually from processing the payroll report.
The payroll liability actually comes from what's happened
when you've been paying your taxes. So what you may notice,
is this report is way off,
which means you haven't been paying your payroll liabilities properly.
Okay?
So the second, so that's the two steps print your reports,
the next step would be go and pay your liabilities.
So you click payroll liabilities
and if you're in the state of California, typically QuickBooks doesn't allow you to pay
some of your taxes
every month.
So this is a sample file. Don't worry about what it says.
We're gonna create down here,
create custom payments.
This is under pay liabilities tab
in the pay, employee center.
So create custom payments,
you're gonna pick last month or whatever timeframe you're paying.
You click OK.
And you'll notice
you have your bank account
that you're paying it out of
the date you paid it you want make sure that's correct,
the period of time you're paying for
and then you come along and you just checkmark these,
that state of California and then you verify that it matched your report for $71
Okay?
that's the first thing you do. The second thing you do is you come along,
and you check your
federal withholding Medicare, both sides will automatically click,
and then Social Security
and you'll notice that's 182,
you make sure that matches what you came up with.
And then you go back,
I recommend doing
processing at once.
Select all your state,
and hit Create.
Now the reason I do it in the order I just did it in
is because if you go and you mark federal unemployment,
that's actually a 940 not a 941.
QuickBooks will try to create one check for all of it
and that will give you problems when you go to reconcile later,
as most people don't pay their federal unemployment every month,
you may, you may not,
you know, typically I only paid at the end of the year unless I reached $500 before that
that's, that's a whole another thing to talk about.
So,
after I verify my amounts,
I click Create.
Then I make sure that I changed my check number to EFT
if I'm using the EFTPS system for IRS,
or the EDD services where it is electronically
taken out of my account.
You'll notice that it says payroll liabilities,
where it goes to
and if you click the little forward button, you'll see the IRS
saying where it's paying it to
and then I hit Save and Close.
Go in,
make sure
that big important part is now you make sure you go into
EFTPS
EFTPS with IRS
or
EDD with the state and you actually pay those taxes.
Don't assume QuickBooks did it. So,
one step is processing it in QuickBooks.
The next step is actually paying it
so I hope this video has been beneficial.
Don't forget to SUBSCRIBE
and if you want to check out my webinars coming up,
don't forget to put your name and email.
If you need help with QuickBooks, there's a link for that too.
Hope you guys have an amazing day.
Don't forget to email me any questions you have.
I create these videos for you guys.
Talk to you soon
Bye-bye.