Set-up Payroll System

We’re going to hire employees!

To do that, we need to set-up payroll.

We’re going to use Gusto.

We need to set up our Chart of Accounts in order to start implementing.

Chart of Accounts

Unified Chart of Accounts

The Unified Chart of Accounts includes the following accounts related to payroll.

21220 Accrued payroll and related expenses


72100 Key employees/directors salaries exp
72200 * Compensation - disqualified persons exp
72300 * Salaries & wages exp
72400 * Pension accruals & contributions exp
72500 Employee benefits exp
72510 * Employee benefits exp
72520 * Housing & personal living expenses exp
72530 * Health benefit plans exp
72540 * Staff development exp
72550 * Staff morale, health, & welfare exp
72560 * Membership dues exp - staff
72570 * Relocation exp
72600 * Payroll taxes expense

Quickbooks Made Easy

Quickbooks Made Easy makes the following recommendations:

  • Payroll Liabilities
  • Payroll Expenses
    • Salary & Wages
    • Payroll Tax

Form 990


  1. Compensation of current officers, directors, trustees, and key employees
  2. Compensation not included above to disqualified persons
  3. Other salaries and wages
  4. Pension plan accruals and contributions
  5. Other employee benefits
  6. Payroll taxes


  1. Accounts payable and accrued expenses: Enter the total of accounts payable to suppliers, service providers, property managers, and other independent contractors, plus accrued expenses such as salaries payable, accrued payroll taxes, and interest payable.