Employer Taxes Journal Entry

Ensure that all appropriate payroll accounts are set up before entering this journal entry.

TIP: Set up a recurring journal entry for this transaction. It could save time since you will be recording the same journal entry for each pay period.

1. Select G/L > Post Journal Entries.

2. The Post General Ledger Journal Entries window appears. Click Add.

3. The Post General Ledger Journal Entries - Add window appears. Do the following:

   1. Set Type of Entry to General.

   2. For Date, enter the date of the payment to the payroll solutions vendor as reflected on the bank statement.

   3. For Amount, enter the employer portion of the taxes for the pay period.

   4. Include the payment date and pay period in the description. (This will help you search for the transaction later if needed.)
      
      

4. Select the JE Details tab.

   1. The debit is recorded against the Payroll Tax Expense account (51030.00).

   2. The credit is recorded against the Payroll Liability account (21029.00).
      
      

5. Click Done to save the transaction.