Setting Up the Payroll Accounts

Before you enter the journal entries for payroll, ensure that you have the following payroll accounts set up.

Click here for help setting up accounts.

Account Name

Account Number

Type of Account

Type of Sub-Account

Level

Description

Payroll Operating (optional)

Between 11000 and 11999.

For example, 11030.00.

Asset

None

SubHeader

Most firms just use the operating account for payroll transactions, but if your firm has a special account for payroll, create this new account in Abacus Accounting.

Payroll Liability

21029.00

Liability

None

SubHeader

Holds payroll liability entries such as total payroll expense.

Salary/Wage Expense

51010.00

Expense

None

SubHeader

Holds salary and wage payment expenses.

Payroll Tax Expense

51030.00

Expense

None

SubHeader

Holds employer-paid employee taxes.

Payroll Service Charge Expense

51040.00

Expense

None

SubHeader

Holds expenses of paying payroll solutions provider for service.

Employer 401K Match Expense (optional)

Between 51000 and 51999.

For example, 51020.00.

Expense

None

SubHeader

If your firm matches 401K contributions, create this clearing account to temporarily hold the match money.

Deductions (multiple accounts) (optional)

Between 21000 and 21999.

For example, 20140.00

Liability

None

SubHeader

If your firm has other salary deductions that are NOT remitted to the payroll solutions vendor, such as 401K contributions, health/dental/vision, insurance, withholdings, etc., create these payable accounts to temporarily hold the deduction money.