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.
| LIABILITY | ||
|---|---|---|
| 21220 | Accrued payroll and related expenses |
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
Expenses
- Compensation of current officers, directors, trustees, and key employees
- Compensation not included above to disqualified persons
- Other salaries and wages
- Pension plan accruals and contributions
- Other employee benefits
- Payroll taxes
Liabilities
- 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.