(During the years 2011 and 2012 only, the employee’s rate was reduced to 4.2%.) In this section of payroll accounting we will provide examples of the journal entries for recording the gross amount of wages, payroll withholdings, and employer costs related to payroll. Oct 3, 2018 – Accounting for those taxes can get a little complex. This article will show you examples of small business accounting payroll entries. May 16, 2017 – Payroll journal entries are used to record the compensation paid to . For example, there may be deductions for 401(k) pension plans, health . Jun 1, 2017 – The expenses include gross wages, which are debited. The liabilities include FICA tax payable, federal income tax payable, state income tax payable, and payroll payable. The liabilities are credited. The next journal entry you make happens when you give the employee their paycheck. Jun 30, 2018 – In accrual accounting, journal entries help make sure that payroll expenses are correctly entered into your books, and reports accurately tie . A payroll journal entry is a method of accrual accounting, in which a business records its debit and credit payroll transactions pertaining to employee . Mar 15, 2018 – When you record payroll, you will generally debit Gross Wage Expense, credit all of the liability accounts, and credit the cash account. Gross Wages will appear on your Profit and Loss report, and the liability and cash accounts will be included on your Balance Sheet report. Dec 8, 2016 – Canadian Payroll related entries can be entered manually using Journal Voucher. . For example, When creating a Payroll for Donna Raymond (her . If you have more than one employee, enter the above Journal Entry for .