Banking Credit: How should I record Net Wages Taxes (Employer (Medicare only)+Employees (Medicare, Fed Income Tax, CA Income Tax) handles by Paychex and withdrawn on different days?
“We run cash basis accounting and have Paychex handles our payroll.”
In the US, payroll is Cash Basis for everyone, for the Pay Date.
Withdrawn on different days = use a Liability account.
“When I record Net Wages”
That is an error. Do it like this:
Gross Wages + Employer Taxes = Total Expense for […]
Resolution for 'Banking Credit issue: 'How should I record Net Wages Taxes (Employer (Medicare only)+Employees (Medicare, Fed Income Tax, CA Income Tax) handles by Paychex and withdrawn on different days?' available: Yes.
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