Payroll
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When entering checks in the register that have to do with payroll, it is important that you only use categories or transfers that use the word payroll as the first seven characters of the category name or transfer account. SportsBM defaults to four liability accounts named Payroll-FWH, Payroll-FICA, Payroll-MED, and Payroll-SEP-IRA. You may also need a liability account called Payroll-STATE if you have to withhold state taxes from each paycheck. Click Accounts / Add to add needed liability accounts.

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For Payroll, you will also need some subcategories, and the Checkbook starts out with Gross Salary, Company FICA, Company MED, SEP-IRA, and Commissions.

To see how these categories are used, suppose an employee is paid $2000.00 per month and 15% is contributed to his/her SEP-IRA. The check would be made out for a net of $1,547.00 after deductions. A sample split transaction is shown on the next page. Notice that the categories with a negative number are transfers and that these amounts are subtracted from the Gross Salary. There are two
Payroll-FICA transfers and two Payroll-MED transfers to explicitly show that half of the amount that goes to the government comes from the employee and half from the "company". This transaction would cause 6 transactions to automatically be created in the corresponding liability accounts. If you go to the liability accounts, you would see that their balances increased as follows: $300.00 to Payroll-FWH, $248.00 to Payroll-FICA, $58.00 to Payroll-MED, and $300.00 to Payroll-SEP-IRA.

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Once you enter a payroll transaction using a set-up like the one above, it is important to memorize the transaction so that you do not have to enter this set of split categories again. Just re-use what you have saved, and if any of the numbers are different the next time, just pull in the memorized transaction and edit the split amounts.

At the end of the month, you must pay out the withheld amounts using your Federal Deposit Coupon. Your check for $606 might be made out to Commercial Bank, and your split transaction would look like the following.

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After this transaction is completed, the balances to Payroll-FWH, Payroll-FICA, and Payroll-MED will be decreased by the amounts listed. In order to "pay out" the balance in the Payroll-SEP-IRA liability account, you would write a $300.00 check to the firm handling the SEP-IRA, and your single category for this check would be [Payroll-SEP-IRA].