Keep payroll and contractor payments in your books
BooksBat payroll lite records the paychecks you run, with the gross wages, deductions and employer taxes you enter, and tracks what you owe for them until it is paid. It also totals your 1099 contractor payments for the year. It does not calculate payroll taxes or file and pay them for you.
- Paychecks posted to your books
- Payroll liabilities tracked
- 1099 summary report
Payroll lite: the record, not the tax engine
Many small businesses pay a handful of people. Some use a payroll service, some have an accountant work out the numbers, and some pay contractors only. In every case, the payments still need to land in your books correctly, with the wages as an expense and the taxes and deductions you withheld as money you owe until you pay them over.
That is what BooksBat payroll does. You add your employees, then record each paycheck with the gross pay, the deductions and the employer taxes, using the figures from your payroll provider, your accountant or the tax tables you follow. BooksBat posts it to the ledger, tracks the payroll liabilities and lets you record the payment when you send it. BooksBat is not a payroll tax engine. It does not calculate withholding, and it does not file or pay payroll taxes for you.
Why record payroll in BooksBat
Employees in one list
Keep each employee's details, pay rate and pay history in one place.
Paychecks recorded properly
Enter gross wages, deductions and employer taxes and BooksBat posts the wage expense, the net pay and what is still owed.
Payroll liabilities tracked
Withheld taxes, employer taxes and deductions build up as liabilities until you record the payment to the agency or provider.
1099 contractors
Mark vendors as 1099 contractors and every payment to them is counted for the year.
1099 summary report
See the total paid to each contractor for the year, ready for you or your accountant to file the forms.
Honest about the limits
No surprises: you stay in control of the numbers and the filing, and BooksBat keeps the record straight.
Record payroll in 3 steps
- 1
Add employees and contractors
Add employees on payroll and contractors and mark the vendors you pay as 1099 contractors.
- 2
Record each paycheck
Enter the gross pay, deductions and employer taxes for each employee, using the figures from your payroll provider or accountant.
- 3
Pay the liabilities
When you pay withheld and employer taxes to the agency, record the payment so the payroll liability balance goes back to zero.
What payroll and contractors include
- Employees
- Names, contact details, pay rate and a history of every paycheck.
- Record paychecks
- Gross wages, each deduction and each employer tax entered per paycheck, with net pay worked out from what you enter.
- Ledger posting
- Wages and employer taxes go to expense accounts, net pay comes out of the bank account and withholdings go to liabilities.
- Payroll liabilities
- A running balance of what you owe for withheld taxes, employer taxes and deductions.
- Liability payments
- Record payments to tax agencies and benefit providers against the liability balance.
- 1099 contractors
- Flag a vendor as a 1099 contractor and keep their tax id on file.
- 1099 summary report
- Total payments per contractor for any year, exportable as CSV, Excel or PDF.
- Payroll reports
- Payroll costs show up on your profit and loss, and liabilities on your balance sheet.
What BooksBat payroll does not do
Payroll mistakes can be expensive, so here is the full list of what is not included:
- No tax calculation. BooksBat does not work out income tax withholding, social security, Medicare, unemployment or any other payroll tax. You enter the amounts.
- No filing. BooksBat does not file payroll tax returns, W 2 forms or 1099 forms with any agency.
- No payments. BooksBat does not pay employees, contractors or tax agencies, and does not move money from your bank account.
- Your responsibility. You, your payroll provider or your accountant stay responsible for correct amounts and on time filing.
If you need a full payroll service, use one, then record its results in BooksBat so your books are complete.
Paying contractors
Contractors are paid like any other vendor: record a bill and pay it, or record an expense or check. See expenses and bills. Because the vendor is marked as a 1099 contractor, the payment is counted on the 1099 summary. At year end, hand the summary to your accountant or use it to file the forms yourself. You can also export it with the rest of your financial reports.
Which plan includes payroll?
Payroll and 1099 contractor tracking are on the Business plan at $12 a month. See pricing for everything included, and bookkeeping for how paychecks reach your ledger.
Frequently asked questions
Does BooksBat calculate payroll taxes?
No. BooksBat records the wages, deductions and employer taxes you enter. It does not calculate withholding or any payroll tax.
Does BooksBat file or pay payroll taxes?
No. BooksBat does not file returns, W 2s or 1099s and does not pay agencies. It tracks what you owe and records the payments you make.
So what is payroll lite for?
For keeping your books complete. If you use a payroll service or your accountant runs the numbers, record the results in BooksBat so wages, taxes and liabilities show correctly in your reports.
How do I track 1099 contractors?
Mark the vendor as a 1099 contractor. Payments you record to them are totaled for the year on the 1099 summary report.
Does BooksBat send 1099 forms?
No. The 1099 summary gives you the totals. You or your accountant file and send the forms.
Which plan do I need?
Payroll and 1099 contractors are on the Business plan. See pricing.
Related features
Expenses and billsRecord expenses, checks and supplier bills, pay them on time, track vendors and purchase orders, and keep every receipt attached.BookkeepingDouble entry bookkeeping with a chart of accounts, journal entries and a ledger that fills itself from your invoices, payments and bills.Financial reportsProfit and loss, balance sheet, cash flow, trial balance, general ledger, aging and more, on a cash or accrual basis.Team and accountant accessInvite your team and your accountant with the right role, run several companies from one login and see every change in the audit log.Time tracking and projectsTrack hours with a timer or timesheet, bill them on invoices and see the income, costs and profit of every project.Keep your payroll records complete
Create a free account and upgrade to Business when you are ready to record paychecks and track contractors.