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.