How to Post Payroll
To streamline payroll with accounting, the accounting/payroll representative posts payroll transactions for each pay period into a journal. The process of posting these transactions is known as making a payroll journal entry. When you post the payroll, you list wages and salaries paid to employees and their deductions for the pay period. You make a separate entry to show the employer's payroll tax liability.
Other People Are Reading
Instructions
-
-
1
Buy a payroll journal from an office supply store, or use a spreadsheet program to create it. Enter the payroll date. You can create a sequential journal entry number for each post. Create headings for Account, Debit and Credit.
-
2
Put Salaries and Wages under Account and enter the total gross amount under Debit. The gross amount is all salaries and wages paid to employees before deductions occur. List deductions individually, under Salaries and Wages. For example, create rows for FIT (federal income tax), Medicare, Social Security, SIT (state income tax), garnishment, and 401(k) contributions. State the total withholding for each one as a Credit. On the last line, under the Account heading, type Payroll Account and list the total net payroll as a Credit. The net payroll should equal all deductions minus total gross salaries and wages.
-
-
3
Create a separate post for employer liability. Create headings for Account, Debit and Credit. List employer payroll taxes, such as FUTA (federal unemployment tax act), Medicare and Social Security individually under Account. Put the respective amounts as a Debit. On the last line, under the Account heading, type Payroll Account and put the total amount as a Credit. All of your debits should equal your credit.
-
1
Tips & Warnings
If you use payroll software with accounting features attached, such as QuickBooks, you can post the payroll in the system.
References
- Photo Credit Comstock/Comstock/Getty Images
