Associating a Vendor With a Payroll Item

In NetSuite, you can set up payroll items and associate that item with a payroll vendor to simplify the withholding and payment of payroll liabilities. Examples of payroll liabilities are social service taxes such as Medicare, social security, unemployment, withholding of payroll taxes, health insurance payments, and 401(k) contributions. The following table provides a list of vendor records you may need to create and associate with payroll expenses and liabilities:

Internal Revenue Service for federal withholding and unemployment, as well as for company and employee contributions for Medicare and Social Security
State Department of Revenue for each state where employees live for state withholding, unemployment, and disability
City and local governmental authorities for any income taxes they are authorized to collect from their residents you employ
Group health/dental/vision insurance provider
Group life insurance provider
Group disability insurance provider (STD, LTD)
Retirement savings account manager (for example, pensions, 401(k)s, or IRAs)
Employee credit union for payroll-deduction savings plans
Flexible spending account manager
Labor union for dues
Charitable organizations for donations by deductions
Clerk of court or other collection agencies for garnishments

To associate a vendor with a payroll item, complete the following tasks:

Create or edit a vendor record. On the vendor record, assign that record to the Tax agency category and select the appropriate liability or expense account. For more information, see Assigning a Vendor to the Tax Agency Category.
Create or edit a payroll item record. On the item record, select a payroll vendor as the Agency for that item.

To associate a vendor with a payroll item:

Go to Lists > Employees > Payroll Items.
Check the Show Inactives box.
Click Edit next to the payroll item you want to associate with a vendor.

If you are creating a new payroll item, click New and select the type of item you want to create.

Note:
The Payroll feature must be enabled in your account to see payroll items in the list.
On the payroll item record, select the appropriate vendor in the Agency field.

Only vendors assigned to the Tax agency category appear in this list.
If you are creating a new payroll item, enter information into the required fields for this item.

Note:
Set any limits in the Limit column on the Payroll Items page.
Click Save.

NetSuite totals liabilities as you process payrolls. You can pay vendors associated with each liability as it becomes due. To do so, go to Transactions > Bank > Pay Payroll Liabilities.

To associate a vendor with a payroll item:

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