Payroll FAQs

Applies to: [x] C&P Classic [x] C&P Pro [x] Job Tracker [x] C&P SQL [x] My C&P! See also: C&P User Guide

Summary: Answers to frequently-asked questions about accounting for payroll with Clients & Profits. Why doesn't Clients & Profits handle payroll? So how do I get payroll into Clients & Profits? What exactly does Clients & Profits do with payroll? How do other agencies handle payroll? Do the hours from time cards and time sheets roll up into payroll? Can I add my employees as vendors, then write them payroll checks in the Checkbook? We use an outside payroll service. How should I enter the payroll summary as a journal entry so that each check is broken out as a separate line item on my bank reconciliation? How do I import CheckMark payroll entries into Clients & Profits? Will Clients & Profits import accounting entries from other payroll programs? Where can I get more information about CheckMark Payroll? How do I import payroll entries from CheckMark Payroll 6.x? Q. Why doesn't Clients & Profits handle payroll? Programming a payroll system that can handle all fifty states and Canada is extremely complex and time-consuming -- which means expensive. Generic payroll programs like CheckMark have thousands of users to justify the cost of maintaining annual updates, technical support, etc. Since programs like these specialize in payroll, they're experts at it. Rather than trying to "recreate the wheel" by adding payroll to Clients & Profits, it made sense to leave payroll to experts like CheckMark. Q. So how do I get payroll into Clients & Profits? If you use CheckMark Payroll to calculate and print payroll checks, then Clients & Profits can import payroll data. Or you can enter journal entries into the General Ledger for each payroll run. Q. What exactly does Clients & Profits do with payroll? Clients & Profits does not calculate payroll or print pay checks. It can account for payroll journal entries in the General Ledger which appear on the income statement and other financial statements, as well as in the bank reconciliation. Payroll accounting entries can be either entered manually or imported from CheckMark Payroll, a leading payroll software program for PCs and Macs. Q. How do other agencies handle payroll? Most agencies use an outside payroll service, such as Paychex or ADP, then make journal entries for the payroll amounts into the General Ledger. Some smaller shops run payroll in-house using a payroll program like CheckMark, then import the journal entries after each check run. Payroll is an easy task to out source, so it's worth considering if you're calculating payroll yourself. Payroll services are much faster and probably more accurate than in-house payroll, especially since payroll tax laws frequently change. Q. Do the hours from time cards and time sheets roll up into payroll? No. Time cards and sheets are used exclusively for job costing and billing and don't affect the General Ledger. This gives you flexibility to track time specifically for jobs and tasks which eventually affect your client billings. Your staffers enter their hours based on what should be billed, which may not always be a true reflection on how they spend their actual time. Q. Can I add my employees as vendors, then write them payroll checks in the Checkbook? No. The checks printed from Clients & Profits use an Accounts Payable type of check stock which has columns for invoice, date, discount, and payment amount. The printed check doesn't support payroll information, such as year-to-date earnings, taxes withheld, employee contributions, etc. Employees need authentic payroll checks which can only be printed from a payroll program like CheckMark. Q. We use an outside payroll service. How should I enter the payroll summary as a journal entry so that each check is broken out as a separate line item on my bank reconciliation? You can enter the journal entry in one of two ways: (1) Enter a separate journal entry for the net amount of each check. Use the check number in the reference number; or (2) because each credit to cash is displayed as a separate line item on the bank reconciliation, enter the payroll summary as a single journal entry with the net amount of each check listed as a separate credit to cash. To enter a check number for each credit-to-cash entry, save the journal entry, then double-click on each credit-to-cash line item and enter the respective check number in the description. On the bank reconciliation, the first 12 characters of the description appear, so each credit to cash can be identified and cleared by check number. Q. How do I import CheckMark payroll entries into Clients & Profits? The General Ledger chapter of your Clients & Profits user guide contains step-by-step instructions for importing payroll, which includes these four steps: 1) Export the payroll checks from CheckMark. 2) Import the text file into Clients & Profits using the Import Payroll command in the General Ledger. 3) Proof the imported payroll entries. 4) Post the payroll entries. Q. Will Clients & Profits import accounting entries from other payroll programs? Yes, as long as those programs share the same data file format for their exported entries. You'll follow the same instructions for importing CheckMark entries for your payroll program. Q. Can I use my Clients & Profits checks with CheckMark? No. CheckMark uses specially-designed payroll checks. They look different than regular Clients & Profits payable checks because they show the employee's salary, deductions, and taxes totals. Payroll checks are available directly from CheckMark. Find out more about CheckMark by downloading this PDF. Q. Where can I get more information about CheckMark Payroll? For sales information call CheckMark at (800) 444-9922. To get technical support, call (970) 225-0387. Or, check their web site: http://www.checkmark.com Outsourced payroll services: PAYCHEX (800) 322-7292 x638 ADP (800) 225-5237 x5064   Q. How do I import payroll from CheckMark Payroll 6.x? CheckMark Payroll 6.x has a different interface for exporting payroll information into accounting programs. Click here for step-by-step instructions. To order CheckMark call Clients & Profits Sales at (800) 444-9922. To get technical support for CheckMark Payroll, call (970) 225-0387 or check their web site: http://www.checkmark.com Search the Daily Q&A database