Payroll is usually charged and accounted for within the operating fund of the foundation.  If you record journal entries for your payroll you would need to add additional lines to each payroll to account for the employee withholding piece, and then the disbursemnt of the gift from the operating fund.

The following lines would need to be included in your payroll entry:
  • DR is already established - as this is the gross salary expense in the operating fund.
  • CR to a liability account in the operating fund- to establish that the company owes moeny out on the employees behalf - and thus reducing the CR to operating cash at this point as the net check to the employee would be lower.
Then, using the same date as you record the gift in the Gift module, record this journal entry: 
 
  • DR liability account in the operating fund for the amount of the gift
  • CR operating cash
In the gift module, record the gift so that it will be part of your gift history and gift reporting.  The gift entry would be:
  • DR to the fund getting the gift - cash account
  • CR to the fund getting the gift - gift revenue account