Debit the wages, salaries, and company payroll taxes you paid. This will increase your expenses for the period. When you record payroll, you generally debit Gross Wage Expense and credit all of the liability accounts.
What are payroll tax documents?
Most employers are required to file Form 941, Employer’s Quarterly Federal Tax Return, to report both the federal income taxes you withheld and the FICA taxes you withheld and paid during a calendar quarter. (Employers who qualify for annual reporting/payment, file Form 944.)
What is the source document for paying employee income tax Social Security tax and Medicare?
You must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, to report your wages and compute any Social Security and Medicare taxes due. You must also file Form 8959, Additional Medicare Tax, to compute any Additional Medicare Tax due.
What tax form shows payroll?
IRS Form 941
If you operate a business and have employees working for you, then you likely need to file IRS Form 941, Employer’s Quarterly Federal Tax Return, four times per year. As an employer, you are responsible for withholding federal income tax and other payroll taxes from each employee’s paycheck and remitting it to the IRS.
What should be included in a payroll journal?
Remember that your journal entry must balance all the debit entries with corresponding credit entries. Some typical credit entries in a payroll journal entry are the total taxes paid by the employer and employee, any employee withholdings and the net value of the direct deposits and live checks.
How to record all of your payroll tax expenses?
Record all of your payroll tax expenses for the pay period as one debit. Then, list the individual amounts as credits. The total credits should match the sum of your debit. Make a note that taxes will be submitted to the respective agencies at a later time. Employers’ Payroll Tax Expenses may include: FICA – OASDI (6.2%) FICA – HI (1.45%)
What kind of taxes do you pay for journal entries?
Employers’ Payroll Tax Expenses may include: FICA – OASDI (6.2%) FICA – HI (1.45%) Corresponding payable accounts should be created for journal entries. (i.e. FICA – OASDI Payable, FUTA Payable, etc.) In addition to the wages and withholdings in the above entry, the employer has incurred additional expenses that pertain to the above workweek.
Where is payroll information recorded for an employee?
Each pay period the payroll information for each employee is recorded on each employee earnings record. Separate payroll accounts for each employee are kept in the general ledger. Nice work!
