record a payment

[JWY]

Hi,

my bos handwritten a check for $386.21 for SUTA. now the check was cashed. so I need to enter the amount in system. I am not sure which account I should enter in (Liabilitie or Expense )

Thanks

Tina

[LauraG]

You should have a liablity account for the SUTA taxes payable. Or you might have one that is for all state taxes payable. Again a liability account.

The paychecks book the taxes to both a liability and an expense account. You clear the liabilty account when you pay the state.

[Lorin Browning]

Since the hand-written check has already been cashed by the state, I would just make a General Journal entry debiting SUTA expense and crediting the appropriate Cash account.

[LauraG]

Lorin has a good point. The debit side of your transaction (expense vs payable) depends on how the SUTA taxes were handled with your payroll checks.

Where I have dealt with payroll they always had a payable account that we posted the payments against.

[JWY]

Thank you so much for your valuable suggestions. I will do some modification based on your suggestions. Thanks a lot!