Argenta allows you to track payroll distributions and easily integrate them into the General Financials system. This article shows you how to enter a payroll distribution in Argenta and explains how it gets entered in your General Journal.
From the Argenta main menu on the left side of the screen, choose either Staff and HR > Payroll or choose General Financials > Payroll Distributions.
Either of these menu items will take you to the payroll distributions list. To add a new payroll distribution, click the "Add New" button above the list. (as shown below)...
This will bring up the Add A New Payroll Distribution screen.
Enter the Payment Date, which should be the date you run payroll and give checks to your staff members.
Enter the pay period start and end dates.
Select the staff member you're paying from the Staff Member drop down list.
Click the "Create Distribution" button to create the payroll distribution and continue to the next screen to enter the details of the distribution.
The next screen is the Payroll Distribution Details page. This is where you will enter the specific details of the payment, including taxes. You will also indicate whether you want to add the distribution to the General Financials system. If you want the transaction to be automatically recorded in all of the proper accounts, check the Add This Transaction to General Financials box.
- If you decide to add the transaction to your accounting system, you can choose a corresponding fund (if applicable).
- Next select the checking or asset account you will use to make the payment.
You will notice the accounts from your Chart of Accounts are already selected for you. Argenta provides the appropriate payroll accounts for you. You can change the account numbers if you choose, but the account names cannot be changed. This is because a payroll transaction is very specific and Argenta does all the journal work automatically, so you don't have to. Following is the distribution of payroll as it is entered into your General Journal.
- "Payroll Account (Expense)" - Payroll Expenses: Wages - The staff member's net pay is debited in this account and credited to the asset account you choose as your payment source.
- "Payroll Tax Account (Expense)" - Payroll Expenses: Taxes - The total of all the taxes that will need to be paid on behalf of the staff member is debited in this account and credited to the corresponding liability accounts.
- "Federal Tax Account (Liability)" - Payroll Taxes Payable: Federal - The amount from the Federal Income Tax field + the amount from the Employer Taxes Paid field + the amount from the Social Security Tax field + the amount from the Medicare Tax field, get credited to this account
- "State Tax Account (Liability)" - Payroll Taxes Payable: State - The amount from the State Income Tax field, gets credited to this account.
- "Other Tax Account (Liability)" - Payroll Taxes Payable: Other - The amount from the Unemployment Tax field gets credited to this account.
From here you will enter the Regular Hours, Overtime Hours, Regular Pay rate and Overtime Pay rates.
Next, fill in the Employer portion of the taxes paid, and the Gross Pay amount for the employee.
Then, you need to fill in all the tax amounts in the appropriate tax fields along with any other deductions.
Lastly, you will fill out the Net paycheck amount, the payment method, and a check/ref number.
This completes the fields for creating a paycheck. You can add any files or notes to the payroll distribution as needed.
Once everything has been filled out you will click the "Save All Changes & Exit" button to add the payroll distribution and return to your full list of distributions.