How do you do a salaries journal?
submitted by Manny Kinn

heather gray

You record the total salaries as an expense by debiting the Salaries Expense account. Then, you credit the liabilities for all deductions and taxes. That includes employee taxes, social security, and any other withholdings. If the salaries are paid out immediately, you'd also credit the cash account. Making sure the withholdings and taxes are correct is crucial.

klever

You figure out how much everyone earned, then subtract the taxes and withholdings. You record the total salary as an expense (debit), and then you put the amounts owed for taxes and other deductions as credits under liabilities. When you pay it out, you just credit cash too.