Puzzle integrates with certain payroll providers to collect payroll details and post them correctly. This piece explores how Puzzle records payroll, how to review payroll details, and how to understand different payroll events.
Puzzle automated payroll (via integration)
When a payroll system is integrated, Puzzle receives information from your payroll provider. The data enables Puzzle to automatically create a journal entry that splits payroll expenses between salaries, payroll taxes, benefits, etc.
Puzzle uses six sub-accounts to record salaries and benefits expenses:
60100 | Salaries |
60200 | Bonuses |
60300 | Commissions |
60400 | Benefits |
60500 | Payroll Taxes |
60600 | Retirement - Employer Contributions |
This entry records an asset against a single clearing account:
13511 | Salaries & Benefits: Clearing |
When the cash payment from your bank account is received, there should be a corresponding entry to clear the balance from the clearing account. Cash transactions corresponding to the amounts recorded by the original payroll entry should all be recorded to this clearing account.
Reviewing Payroll in Puzzle
For those with integrated payroll you can see your payroll in the Payroll tab of the Transactions page. Each payroll has its own line.
Clicking into these payrolls, you can see information from the payroll provider and the corresponding financial statement impact.
You can also see the cash transactions that have been matched to a specific payroll both on the payroll details page and on the transactions page.
Common payroll events
When your employees are paid:
When your payroll provider collects the funds from your account to pay your employees and remit taxes there will be cash transactions in your bank account. These will be categorized as Salaries and Benefits and posted to the clearing account which will be linked to the payroll event.
When you remit 401(k) contributions:
When you remit 401(k) contributions you will have one or more bank transactions. These will be categorized as Salaries & Benefits and posted to the clearing account.
When you make a health or dental insurance payment:
When you pay health or dental insurance, it will generate one more bank transactions. These should be categorized as Salaries & Benefits and posted to the clearing account.