Direct deposit is by far the easiest way to save time on payroll! In QuickBooks, you can make use of this fantastic feature, as it allows you to use the option for both employees and vendor. In case you have picked up a QuickBooks payroll plan, the cost may vary depending on which one you have picked for the same. It is fairly easy and simple to get done with your direct deposit. But when it comes to entering a deposit from an outside source for child support in QuickBooks.
You might wonder how, to begin with, this process since this is a totally new concept. You are not very well aware of these QuickBooks hacks and other accounting tasks. In such scenarios, you can call up the QuickBooks support team to seek help and have the problem solved. Furthermore, using direct deposits in QuickBooks is extremely simple, just a few steps to follow and it will be done.
Setting Up Direct Deposits
In order to send payments through electronic means, you will have to have a relationship with the financial institution that offers such benefits. A business bank account, bookkeeping services, or an online payroll provider will be best for you.
QuickBooks comes in handy and is a fantastic way to offer you help with your direct deposits need! For setting it up, you will need to offer bank account details, fill in a direct deposit form as well as provide a voided check.
How Does it Work?
When you deposit a check, your bank or the credit union needs to make you go through various setup and this process is important before the funds are shown in your account. It requires a lengthy process where the financial institution contacts the bank for which the check is issued and cross-checking the details is done. Further, confirming that the payer has enough funds is the last step in it, which overall takes time.
This is one of the reasons why a regular direct deposit process will take about 2 to 3 days for the amount to reflect in the account. Now, it is simpler and quite convenient when it comes to QuickBooks as an online help to accounting. The direct deposits are pretty much simplified, as ahead of the payday, the employer to which direct deposit information is provided transfers the compensation to the bank.
Child Support Garnishment in QuickBooks
Not many but hardly a few accountings software offers you the feature of child support garnishment and it is indeed one of the most important of all. QuickBooks offers the most sought-after service for setting up payment related to government tax levies issues. This child support garnishment in QuickBooks is the deduction of tax amount that is done from the bank check of employees.
If your business has more than 1 employee with the wage garnishment, then it is recommended to set up payroll items separately for each garnishment. This is because the liability agencies are in need of a case number that helps them distinguish how much is to be paid to each employee particularly.
QuickBooks Error Support Team on the Go
There are chances where you are using the software but you have no idea how to handle certain tasks. Same as this scenario when you are confused about how to enter the deposit from an outside source. You are not sure how is it done for the child support in QuickBooks. And, the slightest mistake from your side will affect your books of account which is the last thing you want.
QuickBooks offer the best help possible and there is an online support team looking forward to helping you resolve all the problems and challenges. You can reach to QuickBooks desktop support phone number and seek help. The assistance will let you handle almost anything, from deposits to error and any other technical help.
Deposit from an outside source for child support in QuickBooks
Child support is directly deducted from the amount that you have already paid to the employee and one that has been recorded in the books. Clearly, child support is not your liability, and even not an expense. It can never be an employee expense but a diversion for taking home.
Let’s look at the payroll math:
Gross wage + employer taxes = net take home and all payroll checks written
Now, when you enter the checks into the register, while you are using the same subaccount for your child support check? What would you proceed further with? Which register and to which bank?
You might enter the payroll as a journal entry with child support as a subaccount for your employee wages. However, this is wrong and can lead to errors in your accountancy.
The journal entry for the same will be Debit gross wages and Credit “Child Support Liability account.”
Do not forget that, as you write the check to pay the garnishment on your expenses tab, you are listing the child support liability account for that.
Garnishments are not a part of the profit and loss account.
How one can sort Child Support in QuickBooks?
1. Choose the Plus icon.
2. Choose the Check option.
3. Now, from the Bank Account drop-down, you will need to choose the account you use for liability payments.
4. Your screen will show a payee drop-down, in the list you need to choose the vendor.
5. Then the Account details section will showcase and in that, select the account you use for tracking your liability payments. Once done, you can then enter the amount.
You need to have a favourable mind when you are using the complicated QuickBooks service. Plus, if you are stuck somewhere, you can always reach out to help from the support team. Child support and direct deposit may be something that will trouble you. And, if you are new, you might be wondering how to go about the process. It is simple if you follow the steps properly and not miss out on a single thing.