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. |