What is Payroll Accounting? Payroll Journal Entry Guide 2021
Credit the FICA tax payable, federal income withholding payable, state income withholding payable, and any other withholdings on employee paychecks. Initial recordings, also known as the originating entry, are the primary entries for payroll accounting. Payroll accounting helps you keep track of employee compensation and other payroll costs. Accounting for payroll gives you an accurate snapshot of your expenses. Payroll liabilities relate to expenses a business owes but hasn’t yet paid. Independent contractors are often…
