Cloud Payroll: External Payrolls

Cloud Payroll: External Payrolls

If your company is starting with CustomBooks™'s Cloud Payroll after the start of a year, it's important to enter your previous payrolls for the current year when setting up your account to make sure your year-to-date filings are accurate. To enter this information, go to Payroll > External Payrolls to get started. 

Failing to report external payroll information accurately can result in:

  • Incorrect tax filings leading to penalties and fines.
  • Inaccurate employee earnings records, affecting benefits and withholding calculations.
  • Potential discrepancies in year-end tax documents (e.g., W-2 forms).
  • Double payments or missed payments of tax liabilities.

 

What You'll Need

Before you begin, ensure you have the following information:

  • Quarter-to-date (QTD) paystub information from each prior quarter for active and dismissed employees paid this year.
  • Individual paystubs from the current quarter for active and dismissed employees.

Steps to Enter External Payroll Information

1. Enter Payroll Dates

First, you need to enter the relevant payroll dates:

  • Check Date: The date the payroll check was issued.
  • Pay Period Start Date: The beginning date of the pay period.
  • Pay Period End Date: The ending date of the pay period.

2. Enter Employee Information

For each employee in the pay period, you will need to enter detailed payroll information:

  • Hours and Earnings: Include regular hours, overtime, and any additional earnings such as tips, commissions, and bonuses.
  • Deductions: Include any pre-tax and post-tax deductions.
  • Contributions: Record employer contributions to benefits like retirement plans or health insurance.
  • Employee and Employer Tax Amounts: Enter both the employee and employer tax withholdings and contributions.

Ensure that all information matches the paystub details you have collected.

3. Review & Submit Tax Liabilities

After entering all payroll data:

  • Review Tax Liabilities: Verify that all tax amounts are correct and match the paystub records. This includes federal, state, and local taxes.
  • Confirm Payments: Verify which taxes have already been paid and which have not yet been paid. For the latter, we will debit and pay on your behalf.
For previous quarters where we did not file and pay on your behalf, we can only debit for FUTA since this is an annually paid tax.

Conclusion

Accurate entry of external payroll information is critical for compliance and financial accuracy. By following the steps outlined above and ensuring all details are correct, you can smoothly transition payroll data into CustomBooks™'s Cloud Payroll module. If you have any questions or need assistance, our Support Team is available to help.


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