The following General Ledger accounts are used by the Payroll module.
Employee FICA/Medicare/SDI/LDI Accrual Accounts
These liability accounts are credited with the amount of FICA (Federal Social Security), Medicare, SDI (State Disability Insurance), and LDI (Local Disability Insurance) taxes withheld from each employee check. Separate accounts can be specified for federal, state, and local taxes. Additionally, each state and local tax jurisdiction can be assigned a separate accrual account. Employee tax accrual accounts can be specified for each tax jurisdiction using Tax Table Maintenance.
Employee SUI Accrual Account
This liability account is credited with the amount of SUI (State Unemployment Insurance) taxes withheld from each employee check.
Employer Contribution Expense Accounts
These expense accounts are debited with the amount of employer contributions calculated for each employee. Employer contribution expense accounts are assigned to appropriate deduction codes using Deduction Code Maintenance. Employer contributions are made using deduction codes when Employer Contribution is selected in the Deduction Type field in the Deduction Code Maintenance window.
Employer's FICA/Medicare/SUI/LUI Accrual Accounts
These liability accounts are credited with the amount of employer FICA (Federal Social Security), Medicare, SUI (State Unemployment Insurance), and LUI (Local Unemployment Insurance) taxes. These taxes are calculated based on employee wages, but are paid by the employer. Separate accounts can be specified for federal, state, and local taxes. Additionally, each state and local tax jurisdiction can be assigned a separate accrual account. Employer tax accrual accounts can be specified for each tax jurisdiction using Tax Table Maintenance.
Employer's Tax Expense Accounts
These expense accounts are debited with the amount of employer taxes calculated for each employee. Separate expense accounts can be specified for employer FICA, Unemployment Insurance, and Workers' Compensation Insurance. You can specify a separate expense account for each department using Department Maintenance. If your company is not departmentalized, the expense accounts used must be specified for department "00."
Payroll Cash Account
This current asset account is credited with the total amount of all checks processed during the payroll cycle. A separate cash account can be assigned to each bank account using Bank Code Maintenance.
Salary and Wage Expense Accounts
These expense accounts are debited with the amount of employee wages paid. You can specify the expense account to be used for each earnings code using Earnings Code Maintenance or Department Maintenance.
Determining which option to use depends on your selection at the Post Exp. by Dept. check box in the Earnings Code Maintenance window for each earnings code. If your company is departmentalized, a separate salary and wage expense account should be established for each department.
Voluntary Deduction Accrual Accounts
These liability accounts are credited with the amount of employee voluntary deductions withheld from each employee check. These voluntary deductions can include insurance premiums, pension plans, union dues, loan payments, meal deductions, etc. Expense accounts can be used to reimburse expenses previously recorded. Voluntary deduction accrual accounts can be specified for each deduction code using Deduction Code Maintenance.
Withholding Tax Accrual Accounts
These liability accounts are credited with the amount of withholding taxes withheld from each employee check. Separate accounts can be specified for federal, state, and local withholding taxes. Additionally, each state and local tax jurisdiction can be assigned a separate accrual account. Withholding tax accrual accounts can be specified for each tax jurisdiction using Tax Table Maintenance.
Workers' Compensation Insurance Accrual Account
This liability account is credited with the amount of employer Workers' Compensation insurance. This amount is calculated based on a fixed amount, employee wages, hours, or days worked. Each state can be assigned a separate accrual account. The Workers' Compensation Insurance Accrual account can be specified for each state using Tax Table Maintenance.
For more information, see Account Maintenance.
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