Pay date

[JG EA]

I have a payroll client who has a bookkeeper. The bookkeeper enters the figures I give her into her program. I let her know how much the 941 payment is.

Well, she can never match this to what she thinks it should be and it is a constant source of telephone calls. The problem is she enters the checks on the last day of the payroll period instead of the pay date. I have explained and explained but can't figure a way to explain it any clearer than the clear report I give her. I tell her how much to save from this payroll for employer's portion and employee's portion. I break down the 941 payment when I tell her how much will be paid.

Can you think of a way I can explain this - I've tried to find something written that clearly says "by the pay date" but it seems to be assumed in the pub 15 and TTB.

[Jiggers]

Tell her the next time that she uses the wrong date that she will do all of them over.

And over, and over and over, until she gets it right.

And one more time that she gets it wrong, out the door.

[Nashville]

Nice Try but

Jiggers, nice try but JG is not this lady's employer. She might even be the owner's wife. As a matter of fact if she is this dense, she might be a relative -- only way she can hold down the job.

One sure-fire way is to give the paymaster a date within three working days of the day the checks are recorded. If the pay period ends on Aug 19th, payroll is not paid until the following week, and bookkeeper insists on recording the payroll as having been paid on the 19th, then:

1) Calculate the payroll tax deposit, and give her a deadline of Aug 23rd.
2) Most likely this deadline has already come and gone.
3) File the 941, complete with Schedule B, giving her date of Aug 19 as the payroll.
4) IRS will assess a late penalty for failure to transmit timely deposit.

Of course, I don't really recommend incurring a penalty for a client. But makes a good conversation piece.

[RitaB]

It's a shame

It's a shame, really. I don't know how you can explain it better. I mean, "Enter the date you are writing the checks on the actual checks. Then do everything based on the date of the checks. Are you getting this?" seems plain enough to me.

I have one (ahem) bookkeeper, who pays everybody on a different day. I told her, "Ok, look, pick a date, any date, for a given week. Use that date for all payroll checks. Unless you want me to turn you over to my buddy Jiggers. Or my buddy Snags."

[ChEAr$]

It's a shame, really. I don't know how you can explain it better. I mean, "Enter the date you are writing the checks on the actual checks. Then do everything based on the date of the checks. Are you getting this?" seems plain enough to me.

I have one (ahem) bookkeeper, who pays everybody on a different day. I told her, "Ok, look, pick a date, any date, for a given week. Use that date for all payroll checks. Unless you want me to turn you over to my buddy Jiggers. Or my buddy Snags."

Nope, not the date the check is written,which might be the day or two before the actual paydate which is almost all cases scheduled for certain days, as in day of the week; last day of the month,15th, etc. Any payroll check should not be dated until the actual pay date!


It's a real problem when a pay date might be the 2nd, but checks are written and handed out on the 31st three days before. That's why I must look at client's bank statement to make sure this didn't happen.

[RitaB]

My people

Nope, not the date the check is written,which might be the day or two before the actual paydate which is almost all cases scheduled for certain days, as in day of the week; last day of the month,15th, etc. Any payroll check should not be dated until the actual pay date!


It's a real problem when a pay date might be the 2nd, but checks are written and handed out on the 31st three days before. That's why I must look at client's bank statement to make sure this didn't happen.

Harlan, that's what I meant to say. (Joking font.)

Actually, my people write checks and hand them to employees in one continuous motion. Employee then stops breathing down clerk's neck and hauls butt to bank cause HE wrote five bad checks yesterday.

[JG EA]

Thanks all. I think I'll just say 'you have to enter it on this date from now on'. The problem is she used to do payroll and always dated the checks (even if given later) on the ending of the payroll period. So, now she wants the check on THAT DATE. Semi-monthly is now paid on the 5th and 20th. She wants them the 31st and the 15th. I gave up trying to explain that that was impossible, impractical, and immoral. I just say 'that's the way they want it (the company).

[outwest]

Sounds like the bookkeeper is beyond logic.

but point out her method would generate huge automatic penalties for certain businesses.

Let's say you are a next business day depositor.

Pay period closes on the 15th, payday on the 20th. Her method of dating checks on the 15th would mean the payroll deposit would be due on the 16th. Even if you managed to process the payroll on the 16th, you can not get a tax deposit in until the 17th via eftps.

That means the taxpayer would be tagged a automatic 2% penalty each and every payroll.

But then, maybe she has a time machine in her desk...

This may have started as a shortcut way to accrue payroll but still won't work even for that if the year closes mid pay period. If that's the issue, do a real journal entry and reversing entry not a shortcut.

[JG EA]

That would be a good way of explaining it to her - I may try that. (penalties and all.)

No, it started because they would figure their payroll instantly (before the day was over no doubt) and want the check instantly.

This is way more time than it is worth, but I do have a little more time now, so I'll keep at it in hopes of things smoothing out.

[veritas]

Could be

the bookkeeper does understand but wants you out of the picture.

[JG EA]

the bookkeeper does understand but wants you out of the picture.

I have thought of this.

[JG EA]

Update - they fired me. They are going to do payroll in-house. But, they want we to do the payroll to finish up January. 'January is done'. 'No we are being paid for 15th-31th of Jan'.

[Burke]

It's a real problem when a pay date might be the 2nd, but checks are written and handed out on the 31st three days before. That's why I must look at client's bank statement to make sure this didn't happen.

I don't do payroll bookkeeping per se except to clean up some clients' QB stuff, so I may not understand this process. I am wondering how my former employer (national corporation) handled it when our pay period ended on the Friday of each week, but the "checks" were EFT'd to our bank accounts on Wed of that same week. I guess they were just taking a chance we wouldn't drop dead on Thursday?

[RitaB]

My clients

I guess they were just taking a chance we wouldn't drop dead on Thursday?

My clients today are kinda looking at me like they are wondering if I will make it till Thursday, too.

[outwest]

I don't do payroll bookkeeping per se except to clean up some clients' QB stuff, so I may not understand this process. I am wondering how my former employer (national corporation) handled it when our pay period ended on the Friday of each week, but the "checks" were EFT'd to our bank accounts on Wed of that same week. I guess they were just taking a chance we wouldn't drop dead on Thursday?

The pay on Wednesday was likely for the previous week not the current week.