Donna Genie (Campground Accounting) describes helping new campgrounds with initial payroll setup when they open. She recounts client situations where payroll must run before payroll systems are fully configured and offers a practical workaround: pay 75% of gross wages initially to cover net pay while reserving funds for taxes and withholdings, then reconcile later when full payroll is set up.
75% of gross wages
Well, recently we've been helping a couple of new campgrounds get off the ground and open their doors to the public. So I want to take you on a few journeys and the obstacles that we face this week helping them so that you can learn from them. I'm Donna Bordeaux with Campground Accounting. We are helping a campground who is opening and one of the first questions that they had was we need to run payroll this week because it's their first official week that they have closed and they have employees waiting for their payroll. Now in this case, this campground just came on board with us. My suggestion if you're running behind the gun on this situation is to pay 75% of the gross wages. That will allow a buffer for Social Security taxes, Medicare taxes and any withholding that needs to be made. And once your payroll is up and running, you can come back through through and adjust that as if it was a temporary loan and run that actual payroll.
