Running payroll can sometimes feel complicated, especially when you're juggling everything from feeding livestock to managing crops. We want to make sure payroll with FarmRaise Payroll is as simple and clear as possible, so here’s what you can expect when running payroll and how it will show up in Tracks.
How Many Transactions Will Come Out of Your Bank Account?
When you run payroll, you’ll see one transaction per employee from your bank account. This single transaction will include both the employee’s pay and the taxes owed for that employee.
How Will These Transactions Appear in Tracks?
The way payroll transactions show up in Tracks depends on how your bank account is set up:
1. Linked Bank Account
If you’ve linked your bank account to Tracks, the transaction for each employee will appear as a single entry in your records. You’ll then need to split that transaction into two parts, since on your Schedule F (for tax reporting), hired labor and payroll taxes are reported separately.
Here’s a breakdown:
Hired labor: This portion covers what you're paying your workers for their hard work.
Payroll taxes: These are the taxes that come out with each payroll run.
FarmRaise Payroll makes this easy by allowing you to split the transaction directly in Tracks, so everything’s accounted for.
2. Manual Bank Account
If your bank account is not linked, but you chose during the payroll onboarding process to automatically add payroll transactions, then Tracks will do the heavy lifting for you. The transactions will be added automatically when you run payroll and will already be split into hired labor and payroll taxes. This saves you time and ensures accuracy when reporting your expenses.
Examples:
You can turn this setting on under 'Account Settings'
Why Does This Matter?
As a farmer or rancher, you’re already balancing a lot—caring for animals, planting crops, maintaining equipment, and managing cash flow. FarmRaise Payroll aims to take one more task off your plate by streamlining the payroll process and making sure your finances stay organized and accurate for tax reporting.
With a straightforward process for splitting into the correct categories, you can stay focused on what matters most: growing food, taking care of your land, and running your farm smoothly.
If you have any other questions, reach out! We’re here to help make farm and ranch finances a little simpler.