Computerized Farm Record Keeping with Quicken® 2003

Bulletin 908

Payroll

Categories Needed For Payroll Purposes

CATEGORY	DESCRIPTION	TAX-REL.	TYPE
Payroll	Payroll expense	Yes	Expense category
Comp FICA	Employer paid FICA	Yes	Sub-category of payroll
Comp MCARE	Employer paid Medicare	Yes	Sub-category of payroll
Gross	Gross wages	Yes	Sub-category of payroll

Accounts Needed For Payroll Purposes

ACCOUNT	DESCRIPTION	TAX-REL.	TYPE
[Payroll-FICA]	FICA taxes	No	Liability account
[Payroll-FWH	Fed. Income taxes withheld	No	Liability account
[Payroll-MCARE]	Medicare taxes	No	Liability account
[Payroll-SWHOH]	Ohio income taxes withheld	No	Liability account

Following is the register entry for the employee's monthly paycheck from the FARM CHECKING account:

Date	Num	Payee	Memo	Category	Amount
1/31/XX	111	Bob Jones		--SPLIT--	1,478.10
		**Split Screen Detail**
		Category	Amount
		1. Payroll:Gross	1800.00
		2. [Payroll-FWH]	-145.00
		3. [Payroll-SWHOH]	-39.20
		4. [Payroll-MCARE]	-26.10
		5. [Payroll-FICA]	-111.60
		6. Payroll:Comp FICA	111.60
		7. [Payroll-FICA]	-111.60
		8. Payroll:Comp MCARE	26.10
		9. [Payroll-MCARE]	-26.10

In this paycheck, the first line of the split screen is the gross wages of $1800.00. Items 2-5 are deductions from the employee's paycheck and are shown as negative entries. Items 6-9 are the employer's contribution and expense for FICA and Medicare taxes. These entries do not affect the bank balance since the expenses (payroll:comp FICA and payroll:comp MCARE) are offset by the negative amounts being added to the payroll liability accounts ([Payroll-FICA] and [Payroll-MCARE]). After this paycheck has been written, the employer has a liability of $145 for federal income tax, $223.20 of FICA tax, $52.20 of Medicare taxes and $39.20 of Ohio income tax. The total owed to the IRS for employment taxes is $420.40.

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