17 Nov Job Costing Procedures When Using an Outside Payroll Services
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Job Costing Procedures When Using an Outside Payroll Services
If an outside service (note that Complete Payroll is now available as an alternative to other outside services) is being used for processing payroll, a decision will need to be made regarding the level of detail needed in QuickBooks. Review the following options to determine which one makes the most sense for the specific needs of the business.
- q The payroll needs to be:
-
- § A) Entered into the software for tracking bank account balances,
- § B) The net check and payroll impound amount clear on the bank statement individually, and
- § C) Job costing is important for accurate profit and loss by job analysis.
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- In this scenario, the payroll will be processed using the full payroll features of QuickBooks. The procedures will be followed like that of a “live” payroll. The only difference from the process described below will be that the net checks will be matched to the payroll register provided by the payroll service as each check is created.
- q The payroll needs to be:
-
- § A) Entered into the software for tracking bank account balances,
- § B) The payroll amount is impounded on the check date in total, and
- § C) Job costing is important for accurate profit and loss by job analysis.
-
- In this scenario, the payroll will be processed using the full payroll features of QuickBooks. The procedures will be followed like that of a “live” payroll. The only difference from the process described below will be that the net checks will be matched to the payroll register provided by the payroll service as each check is created. If the payroll in total clears the bank statement in one amount, use a clearing bank account to enter the individual checks and tax payments, and then enter a transfer to reclassify the amount in total to the bank account where the amount will clear.