Payroll accounting involves a company’s recording of its employees’ compensation including:
1. gross wages, salaries, bonuses, commissions, so thereon are attained by its staff
2. withholding of payroll taxes like federal financial gain taxes, Social Security taxes, health care taxes, state financial gain taxes (if applicable)
*** Contact Us Now To Get Started. ***
+1(855)548 3394
We Are Available 24*7 To Provide Assistance For QuickBooks
3. withholding for the employees’ portion of insurance premiums, employees’ contributions to savings plans, garnishments of salaries and wages, employees’ contributions to United approach, etc.
4. employer’s portion/expense for Social Security taxes, health care taxes, state and federal state taxes
5. employer’s portion/expense of fringe advantages like health and dental insurance, paid holidays, vacations and sick days, pension and savings arrange contributions, employee compensation insurance, etc.
If staff are paid weekly or biweekly and also the company has calendar month/year accounting periods, the corporate can need to accrue for the wages and advantages attained by the staff (but not nevertheless paid or recorded within the ledger accounts) as of the date of the money statements.
You can see additional details together with journal entries at our free clarification of Payroll Accounting.