Automated Account Transactions - Payroll but not Taxes?

OfficeJessOfficeJess Member Posts: 3

I am in the US and signed up for Payroll, Direct Deposit and Automated Tax Payments. I noticed that automated transactions are created as a Journal Entry when Payroll is approved, and an automated Expense Entry is created when my employees are paid via direct deposit. However there is no automated Expense Entry when Wave pays my Payroll Taxes both federally and to the state. Is this an enhancement that is coming? Can this occur automatically if I connect my Bank Account and use mapping?

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  • MikegMikeg Member Posts: 521 ✭✭✭

    @OfficeJess,
    One of the admins can correct me if I'm incorrect, but Wave post a journal entry when payroll is run. This journal entry will post salary expense (gross), the tax expense (employer Fica) and payroll liabilities (withholdings and employer fica). You sometimes have to delete imported transactions because when Wave pays the liabilities it creates it's own transaction (debit liab credit cash). If you are importing transactions, then it will also import the same payment.

  • BarsinABarsinA Administrator Posts: 512 admin

    Hey @OfficeJess

    Since your payroll taxes are filed quarterly, Wave is creating a journal with those remittances to a liability account. When you categorize the bank withdrawal expense transaction as a payroll liability, it goes against the payroll journal balancing out the account. Your payments are withheld by Wave and paid out quarterly. Your tax payments should also be categorized to payroll liabilities as long as you've mapped your payroll accounts accordingly under Settings > Payroll Account mapping.

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