payroll tax GL codes

[jlhx]

The bookkeeper who originally set up payroll in Peachtree for our office apparently had his own way of setting up the GL codes. I had never done payroll before so until I set up a new company's payroll recently (using the Payroll Setup wizard) I didn't know that all of my payroll liabilities should have one GL code (in our case 2001) and all my payroll expenses should have one GL code (we use 5001). When I select an employee to pay (using the payroll module in Peachtree), the EE deductions reflect the liability GL code and the ER deductions reflect the expense GL code. What I need help with though is knowing which GL code to use when I actually issue a check for our payroll tax liabilities. Should I be using the liability GL code, the expense GL code or allocating part of the payment to each?

I'm sure this is a really basic question to those of you who have been doing payroll for a long time, but I'm really stumped (and as a result have also never been sure that my monthly financial reports were showing payroll tax payments properly). I'd appreciate any help anyone can give me on this question.

[dringstrom]

I recommend that you consider purchasing a copy of Peachtree for Dummies. It will give you all of the background that you need with clear explanations. Here's a link that will forward you to Amazon:

www.acctadv.com/go.mv?id=pfd