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Accounting for payroll

Accounting for wages and salaries

1.1 Accounting entries for payroll

 Debit: Gross wages expense
Gross wages
 Credit: Wages payable

Employer SS  Debit: Employer SS expense
expense  Credit: SS and income tax payable

Employee tax and  Debit: Wages payable

SS expense  Credit: SS and income tax payable

 Debit: Wages payable
Net pay
 Credit: Bank

Payment of tax and  Debit: SS and income tax payable
SS to government  Credit: Bank

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