Entering a manual payroll check when outsourcing payroll
KB Article #:
81789
Summary:
Entering a manual payroll check when outsourcing payroll
Description:
If an employee leaves and a manual payroll check needs to be created, showing all the final taxes, how is this done when the firm outsources the payroll?
Resolution:
  1. Obtain the proper taxes and deductions from the payroll service.
  2. Enter a vendor invoice for the employee's payroll amount.
    • Entering distributions for each of the various deductions to arrive at the net check value.
      • This will be the amount of the printed check.
    • By entering all the taxes as distributions, user will be able to print a final check for the employee with the deduction and tax breakdown. 
      Example:  An employee has Regular wages of $720.00 and Overtime of $95.62 resulting in a Gross Wages total of $815.62.
      After applying deductions for:
      • FICA - $50.57
      • Medicare - $6.52
      • Federal WH - $24.55
        The Net check amount is $733.98. 
  3. Once the outsource payroll invoice is received, enter the same information.
Note: The employee taxes should be a reversal of the taxes entered on the check given to the employee. If the check was printed in house, the invoice to the outside vendor will be for taxes and/or service fees. If any salary is included, this amount will need to be deducted from the invoice amount. An example of the amounts entered for the outsourced invoice follows:
  • Employee FICA, Federal WH, Medicare - $81.64
  • Employer Expense FICA, Medicare - $57.09
Net Check for Tax Liability $138.73 which allows for the payment of the withheld taxes from the employee as well as the taxes due from the employer. 
 
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