Time for action - making payroll entries in GnuCash
We are going to enter the payroll accounting entries for one employee with appropriate deductions for federal and state income tax and FICA tax:
- We have created a spreadsheet of the calculations that we are going to use in making the payroll entries. Take a moment to study the following screenshot:
- Create the expense accounts: You need two expense accounts one Payroll Expenses for gross pay and another Employer FICA Tax for the company contribution to FICA tax.
- Create the liability accounts: The tax amounts deducted from the employee's gross pay are owed to the appropriate government agencies. We ...