Goldenseal Payroll Software-- Payroll Escrow Accounts

Payroll Escrows

Can I pay payroll taxes and insurance to an escrow account?

Prior versions of Goldenseal payroll software allowed payments to Escrow accounts, but that caused problems with accounting (since Escrow is considered to be other people's money, and transfers to it are not considered as an expense).

If you pay employer payroll taxes or employee withholding to an escrow account, you should now set up an Other Cost vendor account for the agency, and a separate Checking or Savings account for the bank account holding the funds. You'll use the Pay Bills command to transfer funds to the tax agency, just as normal.

If you want to track balances in the account, you will need to create an Escrow account and then enter deposits and withdrawals manually. However, there is no reason in Goldenseal why you'll need to track the money once it is paid out.

HINT-- Although it may be called an Escrow account, it eventually is an expense payment and should be treated as a regular expense, right from the beginning.

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