How to Set Up a QuickBooks 2010 Payroll Item List
The Payroll Item List in QuickBooks 2010 identifies items that appear on employee payroll check stubs. QuickBooks offers both a Payroll Item guided EZ Set Up option and a Custom Set Up approach.
In QuickBooks, choose Lists→Payroll Item List.
QuickBooks displays the Payroll Item List window.
To add a new Payroll Item, click the Payroll Item button and select New from the Payroll Item pop-up menu that appears.
QuickBooks displays the Add New Payroll Item dialog box. You can choose to set up a new payroll item either by using the EZ Set Up Method or the Custom Set Up Method.
If you want QuickBooks to help you and you’re setting up a common payroll item, click the EZ Set Up button, click Next, and then simply follow the on-screen instructions.
If you want to perform a custom setup of a payroll item, click the Custom Set Up button and then Next. QuickBooks walks you through a multiple-screen interview that asks you about the payroll item to set up. For example, the first dialog box that QuickBooks displays asks you to identify the type of payroll item that you want to create. You answer this question by selecting one of the radio buttons and then clicking Next.
After you set up the payroll item, enter a name for the item in the Add New Payroll Item dialog box that appears.
QuickBooks provides another version of the Add New Payroll Item dialog box that includes a field you fill in to give the new item a name.
Click the Next button to move through the remaining payroll item setup questions.
You identify the name of the government agency to which the liability is paid, the taxpayer identification number that uniquely identifies you to the taxing agency, the liability account that you use to track the items, the tax form line that you use to report the item, the rules that QuickBooks should use for calculating the item (such as whether the item is subject to taxes), and a couple of other miscellaneous pieces of data.
After you supply all this information, click the Finish button (which appears on the last version of the Add New Payroll Item dialog box).
QuickBooks adds the new payroll item to the Payroll Item List.
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accounting equation
The equation Assets = Liabilities + Equity, which demonstrates the two-sided nature of accounting and is useful for explaining the concept of double-entry accounting (or double-entry bookkeeping).
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accounting period
The time period for which financial information is being tracked in a business, such as monthly, quarterly, or annually.
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accounts receivable
An account that records the amounts that customers owe to a business.
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adjusting entry
A correction made to a bookkeeping account that adjusts for accounting errors or other necessary changes at the end of the accounting period.
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cash flows
Used to describe the source or sources of cash or how cash is used.
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Chart of Accounts
A list of all the accounts used by a business, including what types of transactions go into each account.
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debit
An accounting entry that increases an asset or expense account, and decreases a liability or income account.
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dividends
A portion of a company’s profits paid by share of common stock on a quarterly or annual basis.
Accounting Glossary
FASB
Financial Accounting Standards Board. FASB is the highest-ranking authority in the private (non-government) sector of the U.S. for making pronouncements on GAAP and for keeping accounting standards up-to-date.
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fidelity bonds
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First-in, first-out. A method for costs of goods sold in which a business charges out product costs to cost of goods sold expense in the chronological order in which the goods were acquired.
Accounting Glossary
fungible
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Accounting Glossary
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Accounting Glossary
IASB
International Accounting Standards Board. The IASB (based in London) is the main authoritative accounting standards setter outside the U.S.
Accounting Glossary
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Accounting Glossary
LIFO
Last-in, first-out. A method for costs of goods sold that selects the last item you purchased first, and then works backward until you have the total cost for the total number of units sold during the period.
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Limited liability partnership. A legal structure that state laws offer to qualified professionals in which all the partners have limited liability.
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PC
Professional corporation. A legal structure that state laws offer to qualified professionals who otherwise would have to operate as an unlimited partnership liability.
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petty cash
A cash account that businesses keep on hand for unexpected expenses.
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revenue
Monies that are collected in the process of selling a company’s goods and services.
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salvage value
The amount that an asset is worth after it has been fully depreciated.
Accounting Glossary
statement of cash flows
A financial statement that summarizes a business’s cash inflows and outflows during an accounting period.
Accounting Glossary
transactions
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worker’s compensation insurance
A type of insurance carried by employers that covers its employees in case they are injured on the job.
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