Entering Payroll as a Journal Entry For companies that use a payroll service Each time the report comes in from the Payroll service company, you should make the following journal entries: A Journal Entry for the payroll A Journal Entry for the remittance of withholding amounts and employer payroll expenses. If your payroll service doesn't remit withholding and pay employer expenses, don't use the second jounal entry. The checks you write will take care of the postings. Entering the Payroll Enter the date. Optionally enter a journal entry number, which QuickBooks will increment every time a journal entry is made. Tab through the Journal Entry window entering amounts in the columns (debit/credit) as follows:   Account Debit Credit Salaries & Wages Total Gross Payroll   FWT   Total Federal Withheld FICA   Total FICA Withheld Medicare   Total Medicare Withheld State Income Tax   Total State Tax Withheld Local Income Tax   Total Local Tax Withheld State SDI   Total State SDI Withheld State SUI   Total State SUI Withheld Benefits Contrib   Total Benefits Contributions Withheld 401(k) Contrib   Total 401(k) Withheld Other Deductions   Total Other Ded Withheld Payroll Account   Total Of Net Payroll Entering Payroll Liability Payments In a separate Journal Entry enter the liability payments as follows: Account Debit Credit FWT Total Federal Remitted   FICA Total FICA Remitted   Medicare Total Medicare Remitted   State Income Tax Total State Tax Remitted   Local Income Tax Total Local Tax Remitted   State SDI Total State SDI Remitted   State SUI Total State SUI Remitted   Benefits Contrib Total Benefits Contributions Remitted   401(k) Contrib Total 401(k) Remitted   Federal Unemployment (FUTA) Total FUTA Remitted   Other Payments Total Other Deductions/Payments Remitted   Payroll Account   Total Payments Made