If you want to manually enter your US payroll deductions into Kashoo, please follow the instructions below. Once you know what you need to pay your employees and the government, here’s what to do in Kashoo.

Note: If you operate a business in Canada, please see our article Entering Payroll Deductions - Canada.

Kashoo by default already has a “Payroll Expense” account, so you will only need to add some payroll liability accounts.

Note: If you imported your own chart of accounts, then be sure that you do have an equivalent Payroll Expense account as these instructions assume you do.

Liability accounts are the accounts you use for money that your company owes. When you pay an employee, you deduct payroll taxes that you’ll then remit to the government.

You will need to create the following Taxes and Remittances liability accounts:

To create those accounts go to Accounts in the left hand navigation menu.

In the Add New Account section, add the following accounts:

If you look at the Liabilities / Credit Cards section, you will see the new accounts you created.

You can enter your employee payroll by going to the Bills to Pay page.

For this example, we are going to have Employee A (great name, huh), make $1,000 (gross pay) in the pay period.

Here is her pay stub:

So after taxes, the Gross Pay of $1,000.00 becomes Net Pay of $755.20. Notice that all the taxes are negative amounts while the Gross pay is positive.

If you look at the screenshot below, you will see what the payroll expense looks like in Kashoo.

Note: There is no State payroll tax in Washington State, so that’s why for this example the amount is $0. Payroll liabilities will vary from State to State, business to business, and employee to employee, so please make sure you know what taxes you need to remit

Note 2: To get the Tax and Remittances accounts to show up in the Expense Account field, you will have to scroll down to the bottom and click Show All Accounts. Alternatively, you can simply start typing in the account name into the text box and it will display accounts that match the name.

After you click Add to add the payroll deduction expenses, you can click on Edit to view the summary of this transaction or click Duplicate to duplicate this transaction. The Duplicate function is great because you can enter multiple payroll entries in a row by simply changing the employee’s name (the Supplier field) and the deductions amounts.

You will be able to view deductions and pay history of your employees by going to the Suppliers page 

The transaction history is found in the lower portion of the Supplier Page.

You can also view total payroll deductions in the Balance Sheet report.

You’ll find your payroll accounts in the Liability part of the report.

When you remit payroll taxes to the government, you can do so from the Income and Expenses page.

For this example, this is what would be entered: