Single Touch Payroll (STP)

You’re welcome Wilfords 😊

Hi BYBookkeeping 

The Payroll Clearing Account and the Electronic Clearing Account have different functions.  The electronic account is for uploading payments to your bank by an ABA file.

The Payroll Clearing Account is for reconciliation if you are manually transferring wages. Process your pays as normal and make the actual payment. Then go into Transfer Money.

Date: date you make the actual payment 

Transfer from account: bank account 

Transfer To account: payroll clearing account 

Amount:  net pay

memo: Sue Smith wages

You can save these as a recurring transaction so you just have to change the amount.

At the end of month go into Bank Reconciliation 

Bank Account: Payroll clearing Account

Date: last day of month

Closing Statement Balance: $0

Tick all transactions and you should reconcile back to $0.

Click reconcile.

By doing this you know that the amounts you have physically paid match your payruns. 

If you don’t want to use the Payroll clearing account go into Setup>>Linked Accounts>>Payroll Accounts and change the linked accounts for cash and cheque to your bank account.  The linked account for electronic payments should be the electronic clearing account.

Cheers

Tracey