When using the Connect Now Payroll module, every payroll that you run will automatically update all of the appropriate payroll liability and expense accounts once the distributions are setup correctly.
Paying the federal and state payroll taxes is simple in Connect Now Accounting once you know where the proper information is. Fortunately there are a few reports that can help you get the correct tax numbers to pay the government.
The following reports will give you the numbers that are needed in order to pay the correct amount to the government:
All of these reports can be found in Payroll module in the Reports area.
- Federal Tax Remittance
- Federal Unemployment
- State and Local:
- State Accumulations
- Local Accumulations
- State Unemployment
These reports should provide you with the correct numbers that you will need to pay your payroll taxes. The Local Accumulations report is only necessary if you need to pay local taxes, if you don't have any local taxes then you don't need to run the Local Accumulations report.
When you pay your tax bill, you’ll create a bill to whomever you pay the taxes to (IRS, local bank, etc.) and use the Liability Accounts you used for the Social Security, Medicare, Federal and State Taxes (You probably pay your state taxes differently than the others, but it is included it in this example just to give you an idea).
When you pay the IRS, this will automatically lower your liability account balances! So paying each employee increases the liability account balances, and paying the IRS lowers the liability account balances!