@Simon_s
I don't know, if I were making $4,900 each payroll, I wouldn't mess with a good thing. Sorry, bad joke.
To what accounts are you assigning the tax liability payment, the direct deposit payment, and the processing payment? The direct deposit portion is your gross payroll expenses minus employee withholdings. Is that how you are recording that part? Does your payroll processor provide you with a journal entry to enter employee and employer portions of FICA and employee withholdings? We have a similar setup and our payroll processor provides a journal entry with each payroll.
