Description of payroll options in Accounting Professional and in Small Business Accounting 2006

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INTRODUCTION

Several payroll options are available in Microsoft Office Accounting Professional and in Microsoft Office Small Business Accounting 2006. This article describes the following payroll options:

Automatic Data Processing (ADP) payroll
Manual payroll
Manual payroll checks

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MORE INFORMATION

Manual payroll option

You can use the manual payroll option to process payroll without an Internet connection and also to keep your payroll at home. If you have a small number of employees, and if you do not want to sign up for ADP, you can use the manual payroll calculation. To do this, follow these steps.

Notes

You must have Microsoft Office Excel 2003 or Microsoft Office Excel 2007 installed to use the manual payroll option.
To use the manual payroll option in Small Business Accounting 2006, you must install Service Pack 1 for Business Contact Manager Update and Small Business Accounting. For more information about this service pack, visit the following Microsoft Web site:
http://www.microsoft.com/downloads/details.aspx?FamilyId=93929CAC-37F3-4EE1-931B-807703037E89&displaylang=en (http://www.microsoft.com/downloads/details.aspx?FamilyId=93929CAC-37F3-4EE1-931B-807703037E89&displaylang=en)

On the Employees menu, point to Manual Payroll, and then click Enter Manual Payroll.
In the Manual Payroll dialog box in the ManualPayrollCalculation spreadsheet, enter the start date in the Period Start Date field, and then enter the end date in the Period End Date field.

Note You must enter the payroll period to use this spreadsheet.
Calculate the payroll.

Note For more information about how to use the spreadsheet calculation, see the section on this topic in Small Business Accounting Help or in Accounting Professional Help. To do this, follow these steps:
1. Start Help.
2. Expand the Employees node, expand the Payroll node, and then click Enter payroll manually.
3. Click Set up the Manual Payroll Calculator to obtain help.

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Manual payroll check option

You can use the manual payroll check option to write manual checks for owners' draws or for preset amounts that are seldom changed. You can use this option if you do not have to calculate payroll.

To write manual checks, follow these steps.

Note To use the manual check option in Small Business Accounting 2006, you must install Service Pack 1 for Business Contact Manager Update and Small Business Accounting. For more information about this service pack, visit the following Microsoft Web site:

http://www.microsoft.com/downloads/details.aspx?FamilyId=93929CAC-37F3-4EE1-931B-807703037E89&displaylang=en (http://www.microsoft.com/downloads/details.aspx?FamilyId=93929CAC-37F3-4EE1-931B-807703037E89&displaylang=en)

On the Employees menu, point to Manual Payroll, and then click Manual Payroll Check.
In the Bank account field, select the account that is associated with this check.
In the Pay to box, enter a name or select a name from the list.
In the Amount field, enter the amount that you want to pay.
In the Items and expenses area of the Name column, select the expense account that is used to track payroll expenses.
In the Line Total column, enter the expense amount.
In the Earning/Deduction column, select Earning.
Repeat steps 5, 6, and 7 for each expense account that you must process.

Note The total pay of all expense accounts is not the net pay that is entered in the Amount field. The total pay of all expense accounts is equal to the gross pay for the employee.
In the Name field in the Items and expenses area, select the current liability that is used to track payroll liabilities.
In the Line Total column, enter the liability amount.
In the Earning/Deduction column, select Deduction.
Repeat steps 9, 10, and 11 for each liability account that you must process.

Note The total deduction of all liabilities is equal to all deductions that are withheld from the employee.
Click Save and Close.

Note For more information about how to pay payroll liabilities, click the following article number to view the article in the Microsoft Knowledge Base:
908806 (http://support.microsoft.com/kb/908806/ ) How to pay payroll liabilities in Microsoft Office Small Business Accounting