Payroll – QuickBooks Payroll Run After Square

Purpose

Square Payroll is the most cost-effective payroll service for small businesses and QuickBooks Desktop is the most cost-effective accounting software. Although one can use the QuickBooks payroll service integrated directly within QuickBooks Desktop, the cost savings by using Square payroll instead is significant, especially if one wants to run a weekly payroll (which employees love). This document will provide the steps to take after running payroll through Square so that one can account for all of the expenses in QuickBooks Desktop.

Prerequisites

  • First conduct the payroll run(s) in Square for the month
  • Download the monthly statement for your business checking account

Solution

Download the Reports for a specific Payroll Run per Employee

Sign in to Square using your credentials
Once the Dashboard loads, at the left-hand side of the window near click on the Payroll link
At the left-hand side menu click on the History & Reports link
At the top right-hand corner click on the Payroll Reports button

  1. To the right of Report Type click on the Select pull-down menu and select Company Totals (XLSX)
  2. To the right of Pay Date Range click on the Select pull-down menu and choose the paycheck date for both fields of the range
  3. Click on the Payroll Reports window to exit the range selection window
  4. To the right of Team Members click on the All Team Members pull-down menu and choose the first employee
  5. Click on the Download button

(Repeat the steps above for each employee in this payroll run)

Run Payroll in QuickBooks Desktop

Launch QuickBooks Desktop, select your company file and login with your credentials
Go to the Home window and click on the Pay Employees button
In the PAY PERIOD ENDS field select the ending date for that pay period
In the CHECK DATE field select the date that matches most of the Square withdrawals on your bank statement for that payroll run
Place a check in the checkbox next to the employee you wish to process
Verify or modify the hours for that employee and click on the Continue button
Click on the Open Paycheck Details button
Switch back to your browser and in the History & Reports list scroll over to the Pay Period you are processing and click on the listing
To the right of the employee’s name which you are processing, under the Paystub column click on the View link
Enter the deduction amounts seen in Square over to the corresponding Employee Summary (adjusted) fields
Verify that the Net Pay amount in Square matches the Check Amount in QuickBooks then click the Done button in Square
Open the downloaded Payroll Report for the employee you are processing
Enter the Employer Tax amounts seen in the spreadsheet to the corresponding Company Summary (adjusted) fields
Using a calculator add the amounts in the Company Summary (adjusted) fields and verify the total against the spreadsheet
If the totals mach click on the Save & Close button
Click on the Create Paychecks button
Click on the Close button

(Repeat the steps in this section for each employee in this payroll run)

Pay Payroll Liabilities

Click on the Employees menu and select Payroll Taxes & Liabilities > Pay Payroll Liabilities
In the Dates pull-down menu select Custom
Click in the from filed and select Pay Period Ending Date then click on the OK button
Verify that in the Bank Account field your business checking account is selected
In the Check Date field select the date that matches most of the Square withdrawals on your bank statement for that payroll run
Place a check in the checkbox next to the following Payroll Items:
Federal Unemployment
OR – Statewide Transit Tax Emp.
OR – Transit Dist. (Tri-Met)
OR – WBF Assessment
OR – WBF Assessment Company
Verify that the AMT TO PAY matches one of the withdrawal amounts on your bank statement and click on the Create button
Click on the Employees menu and select Payroll Taxes & Liabilities > Pay Payroll Liabilities
In the Dates pull-down menu select Custom
Click in the from filed and select Pay Period Ending Date then click on the OK button
Verify that in the Bank Account field your business checking account is selected
In the Check Date field select the date that matches most of the Square withdrawals on your bank statement for that payroll run
Place a check in the checkbox next to OR – Withholding
Verify that the AMT TO PAY matches one of the withdrawal amounts on your bank statement and click on the Create button
Click on the Employees menu and select Payroll Taxes & Liabilities > Pay Payroll Liabilities
In the Dates pull-down menu select Custom
Click in the from filed and select Pay Period Ending Date then click on the OK button
Verify that in the Bank Account field your business checking account is selected
In the Check Date field select the date that matches the day after most of the Square withdrawals on your bank statement for that payroll run
Place a check in the checkbox next to the following Payroll Items:
Federal Unemployment
Federal Withholding
Medicare Company
Medicare Employee
Social Security Company
Social Security Employee
Verify that the AMT TO PAY matches one of the withdrawal amounts on your bank statement and click on the Create button

Update Payroll Liabilities in Check Register

Go to the Home window and click on the Check Register button
From the Select Account pull-down menu select your business checking account to open the check register
Verify that in the Bank Account field your business checking account is selected and click the OK button
Scroll through the register to where you can view all of the payroll withdrawals for that pay period
From your bank statement copy the corresponding reference number into the check number field for each entry then click the Record button
Right click on each liability payment, select Edit Liability Check, correct the PERIOD dates then click Save & Close

(Repeat the steps in this document for each pay period for that month)