Posting Period vs Quarter Dates

Seems like I’m getting more questions about this lately. In payroll, the government wants to know when a paycheck is negotiable, and that’s the date of the check, which drives the quarterly reports. They don’t care when the work was performed.

Income statements are by Posting Periods which don’t have to match the date, although they can. When work is performed the last week of March and the check is dated April, it can be posted to March, but it’s a Quarter 2 check based on the check date. This helps with over/under billing, too. Just make a journal entry for the accrued payroll and reverse it next period. – CMW