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Manually Recording a transaction in Checking Account, part of which goes to a liability account

I pay independent contractors using the following accounts: Debit Payments to Musicians $700.00, Credit Cash $659.44, Credit Income Tax Withholding $40.56. Is it possible to manually record this particular transaction? I use the online version of Quicken on a Mac.

Best Answer

Answers

  • Income Tax Withholding is a liability account.
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    Yes.  Why can't you?  What is the Online version?  Quicken is a Desktop program.  Do you mean QuickBooks?  

    Also, I answer tax questions in Turbo Tax.  Are you paying a independent contractor or an employee?  You do not withhold taxes for a independent contractor on a 1099Misc.  And if you are paying employees you give them a W2 and hold out FICA (SS & Medicare) and pay quarterly payroll taxes.
  • I am entering this transaction into the checking account from which it does not appear I can make an offset entry to a liability account. It appears the only accounts I can affect from the checking account are CATEGORIES, not other ACCOUNTS (i.e. Liabilities). What I meant by online version is the subscription version. I am not using Quickbooks. If I were using Quickbooks, which I have in the past, I could just write a journal entry. I don't believe that is possible in Quicken.
    I am paying independent contractors. In California we are required to report each person's annual income (over $600) by the state in which the money was earned. (Our independent contractors perform in many states.) Additionally, for out-of-state residents (independent contractors) we are required to withhold 7% of California source income on annual earnings in excess of $1500.
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    See this whole post for adding the Transfer column in Mac  or type the transfer account in square brackets like [Income Tax Withholding]
    https://community.quicken.com/discussion/7443382/just-upgraded-from-q07-to-q17-for-mac
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