Winter 2000

Here is your complimentary copy of The Desktop Accountant, our periodic newsletter with tips and tricks for using QuickBooks and QuickBooks Pro.

The Sleeter Group has been very busy the past several months developing a number of new products and services to help you learn, teach or troubleshoot accounting systems using QuickBooks.

We are now in the process of updating our books and training materials for QuickBooks 2000, which was recently released by Intuit. Check our website for news of when these new versions are available.

Also, we want your opinion about the changes in QuickBooks 2000. As you might have seen, the program looks very different, and we want your opinion about it. Please send email to qb2000feedback@sleeter.com with your comments. Specifically, what do you think about the new interface (menus and navigation bar), and the new policies for the Payroll Tax tables. In our next newsletter we'll publish the results of our survey. We can't promise to change anything in QuickBooks, but we'll try to get your feedback to Intuit's engineers.

Introducing the most complete, in-depth, and easy-to-use QuickBooks college text, Introduction to QuickBooks, written by Douglas Sleeter for Glencoe/McGraw-Hill. If you're a QuickBooks instructor, this is the best classroom material you'll find. If you're new to QuickBooks, the book gives step-by-step examples and several self-study exercises for each section. There are end-of-chapter exercises and tests, and there is a complete Instructors Guide available with answer keys and instructor tips. Order today from our website.

The Sleeter Group now develops QuickBooks add-on software that extends the capabilities of QuickBooks. Our first product is State Payroll Reporter. The State Payroll Reporter will, in 3 easy steps, extract payroll data from your QuickBooks file and automatically complete your DE-6 and DE-7 reports that must be filed with the California State Employment Development Department. These reports have been designed according to strict layout guidelines by the EDD. They were tested and approved by the EDD to ensure that the forms could be automatically scanned by their equipment. Click here for details or to order the software.

Last but not least, your success is what we are all about. Please feel free to drop us a line and let us know how we can be of greater service to you (newsletter@sleeter.com)

This Month's Newsletter Topic Is "How to Handle Multiple Wage Garnishment Items".

I hope you enjoy our tips! Drop me an e-mail with your comments.

Doug Sleeter

QuickBooks® Payroll - How to Handle Multiple Wage Garnishments

One of the problems of using the generic system (one deduction item for all garnishments) is that if you have multiple employees with garnishments, QuickBooks® will try to pay all of the garnishments on the same check since the deduction item can only be payable to one vendor. Many garnish administrators are very picky about receiving a separate check for each garnishment with the case or cause number listed. Many also want the payor and payee listed on the check. Because child support is the most common example of wage garnishments, we will use that example in our illustration. However, the method works exactly the same regardless of the type of garnishment.

We can force QuickBooks® to print a separate check for each garnishment by creating a separate "logical" vendor for the one "physical" vendor. The first step to using the below method is to create a separate vendor for each garnishment that you have to withhold and remit. Note that you need a vendor for each garnishment, not just each employee.

Notice that the Case# is listed as the last line of the address. If you have QuickBooks 99 or earlier, this allows you to have the Case number (or other memo) print on the payment (check). In QuickBooks version 2000, use the Note field in the Address Details screen to enter the text that you want in the address section of the payment.

On the ‘Additional Info’ tab, use the Account field to enter the memo you want to appear on the Memo line at the bottom of the payment. For example, on this vendor record (see below), the account field says "Duncan Fisher payable to Jane Fisher".

The second step using this method is to create a separate payroll deduction item for each garnishment. Each one must have a unique name, so name them ‘Garnish xxx’ where xxx is the employee initials. Again, if one employee has more than one garnishment, make a separate payroll item for each one. The only other difference between the items is that each is paid to the unique vendor we created in the first step.

If your state allows you to withhold a garnishment fee and you decide to take it, you will also need a deduction item for it. The fee you are allowed to take varies state to state, so check with your accountant on the amount. You can use the same item for everyone in this case since you won't be sending it to anyone, but will be keeping it yourself. In the field for liability account on the second screen, enter an income account since you have "earned" this money by handling the garnishment.

The rest of the screens in the Payroll Item setup are exactly the same as the first example except for the amount.

The next step is to enter the new deduction items on the employee setup screens. Edit the employee(s) who have the wage garnishment and go to the Payroll Info tab. Enter the Garnish xxx deduction item and, optionally, the Garnish Fee item.

While creating the paycheck, QuickBooks® will deduct the garnishment amount from the employee’s paycheck.

The final step is to remit the withheld wage garnishment. Use the Pay Payroll Liabilities function and select the wage garnishments you wish to pay.

Notice on the Liability check that the check will print to the order of "Clerk of Orange County" and that the case# and the payer and payee are automatically entered on the check for you.

The above method provides the following benefits:

1. It forces QuickBooks® to print a separate check for each garnishment because each is paid to a unique vendor.
2. It automatically enters the information that most clerks require, including the case# and the payor and payee name.
3. It makes it very easy to find out how much was withheld for a certain garnishment and when it was remitted by running a report on the payroll item for that specific garnishment.

The Sleeter Group, Inc. is not affiliated with Intuit, Inc.