Record a Payroll Journal Entry

The easiest way to record payroll in the application is to use the journal entry feature. If you are on a cash basis, you also have the option to enter payroll into your system without creating a journal entry.

Manually Record a Payroll Journal Entry

To manually record a payroll journal entry:

1. From the left navigation panel, click Accounting.
2. From the Accounting menu, click Journal Entries.
3. From the toolbar atop the Journal Entries screen, click Add.
4. On the Add Journal Entry screen in the Entry field, enter a reference number or phrase for the entry.
5. From the Date drop-down field, click the date.
6. Use the drop-down and entry fields to enter each line item’s account, debit or credit, name, memo, and class, if applicable, per your bookkeeper’s or accountant’s direction.
   Note: The total debits must equal the total credits before you continue.
7. In the upper right corner, click Save.

Important Notes

• The application allows you to use the 2400 Payroll Liabilities GL account for the employer expenses, withholding, and deductions line items.
• You would then use the 2400 Payroll Liabilities GL account when remitting the employer expenses, withholding, and deductions to the tax agency, benefits administrator, etc.
• Have your bookkeeper or accountant confirm the 2400 Payroll Liabilities GL account is appropriate for you to use.

Record Payroll Without a Journal Entry (Cash Basis Only)

To record payroll without a journal entry for a firm operating on a cash basis:

1. From the left navigation panel, click Banking.
2. On the Bank screen, double-click the bank to access Transaction.
3. From the toolbar atop the Transactions screen, click Add > Add Withdrawal.
4. In the Add Transactions screen, complete all the fields.Add Transaction Screen Fields
   

   Bank	This will default to the bank from which you are withdrawing the funds.
   Date	From the drop-down, click the withdrawal date.
   Amount	Enter the withdrawal amount.
   Integrated Payments	If using CosmoLexPay(US),  CosmoLexPay (Canada) or LawPay, you will see this option. If you wish to process this withdrawal using your integration, check this box.
   Type	From the drop-down, choose between Withdrawal and Adjustment Out.
   Ref #	Enter a reference number, if desired.
   Method	From the drop-down, select the withdrawal method.
   Pay To	Enter who is receiving the amount.
   Address	Complete the fields, if desired.
   Memo	Complete the field either by typing or choosing from the drop-down.
   Memo2	Enter the information you want to record for internal record keeping only.
   Split Section	From atop the split section, click Add and enter the Account (e.g. 6475 Salary and Benefits, 2400 Payroll Liabilities etc.) and Amount.
   Remember Payee	Check the box if you would like to add this payee to your address book. If you do not wish to remember, leave the box unchecked.

5. Once you have completed the fields, take the appropriate action:
   • • Click Cancel to exit the screen without saving the transaction.
     • Click Save and New to save this trust transaction and enter another withdrawal.
     • Click Save to save this trust transaction and return to the Transactions screen.

   If you clicked Save or Save and New, the system adds the transaction and associates it with its designated matter.

   If you marked this as a check to be printed, it has been added to your check print queue. You can choose to print this check now, or later on.

Important Notes

• The application allows you to enter the gross salary/wages amount in the debit column and enter withholding and payroll deductions as credits.
• The total debits less the total credits must equal the check amount for the system to save the split.
• The system permits you to use the 2400 Payroll Liabilities GL account for the withholding and deductions credit line items.
• Use the 2400 Payroll Liabilities GL account when remitting the withholding and deductions to the tax agency, the benefits administrator, etc.
• Have your bookkeeper or accountant confirm the 2400 Payroll Liabilities GL account is appropriate for you to use.
• Employer payroll expenses associated with the paycheck are not addressed through this method.