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The following General Ledger accounts are used by the Payroll module.

 

 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.

Withholding tax accrual accounts can be specified for each tax jurisdiction using Company Tax Group Setup.

 

   Employee Social Security, Medicare, Unemployment and Other Tax Accrual Accounts

These liability accounts are credited with the amount of withholding, Social Security, Medicare, unemployment, and other taxes withheld from each employee check.

The taxes included in the "other" category vary by jurisdiction. Separate accounts can be specified for federal, state, and local taxes.

Employee tax accrual accounts can be specified for each tax jurisdiction using Company Tax Group Setup.

 

   Employer's Social Security, Medicare, Unemployment, and Other Tax Accrual Accounts

These liability accounts are credited with the amount of employer Social Security Medicare, unemployment insurance and other taxes. These taxes are calculated based on employee wages, but are paid by the employer.

The taxes included in the "other" category vary by jurisdiction. Separate accounts can be specified for federal, state, and local taxes.

Employer tax accrual accounts can be specified for each tax jurisdiction using Company Tax Group Setup.

 

 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 Company Tax Group Setup.

 

 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 Expense by Dept. check box in Earnings Code Maintenance for each earnings code. If you have departments set up, a separate salary and wage expense account should be established for each department.

You can also specify expense accounts for labor codes in Labor Code Maintenance. When the labor code is used for a payroll earnings line, the earnings expense is posted to the account associated with the labor code instead of the account in Earnings Code Maintenance or Department 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 Social Security, unemployment insurance, and Workers' Compensation insurance.

You can specify a separate expense account for each department using Department Maintenance. If you aren't using departments to organize your payroll, enter the expense accounts using the default "00" department number.

 

 Payroll Accrual Account

If the Allow G/L Accrual Postings check box in Payroll Options is selected, you can specify whether to post wage expenses, tax expenses, and/or tax accruals to an accrual account using a calculated percentage. The accrual account is specified in Department Maintenance.

 

 Time Off Accrual Accounts

Use Department Maintenance to enter liability and expense accounts for the three time-off types defined in Payroll Options. If you aren't using departments to organize your payroll, enter the accounts using the default "00" department number.

 

 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 Deduction Code Maintenance.

 

 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.

 

 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.

 

For more information, see Account Maintenance.