Payroll/Employee Tab
Manager Menu-Tabs
The Payroll/Employee Tab sets up employee records and includes all the tasks related to inputting, calculating , processing, and updating employee records and updating general ledger accounts.
Note
Manager does not performing any actual payroll calculations
Prior to using the payroll feature, you need to add the payroll accounts to your chart of accounts.
Refer to Manager's Payroll Instructions if you want to use this feature.
Alternative
Some businesses use third-party processing services to manage payroll. In such cases, there is usually no reason to enable the Employees tab, because individual payroll transactions are not directly entered in Manager. Instead, lump-sum transactions are entered for each payroll period and individual payroll records are maintained by the outside processor.
If you don't use Manager's Payroll, you can still add ordinary accounts to your chart of accounts and record payroll entries using a Journal Entry.
Example Accounts USA users
- Regular Earnings - Expense
- Overtime Earning - Expense
- Other Earnings - Expense
- Income Tax Withheld - Liability
- FICA Tax Withheld - Liability
- Other Deductions - Liability
- Net Pay - Liability
- Employer FICA Expense - Expense
- Unemployment Taxes - Expense
- Workmen's Compensation Insurance
- Employer Payroll Liabilities
If you're not familiar or never handled the preparation of payroll, you might want to consider an alternative to doing it "in house". Many small businesses hire an outside agency that specializes in payroll preparation and is familiar with the payroll tax laws.
A site you might want to explore that does actually provide free Payroll Management for up to 25 employees is Payroll4Free.com.