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Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
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Guest
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| Posted: Tue Jun 17, 2003 9:00 pm Post subject: Help With Payroll Tax Please |
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When a company has a payroll tax liability but not paid yet you credit the payroll tax payable and you debit what? And when you pay that liability you debit what and credit what? Thanks
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Guest
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| Posted: Tue Jun 17, 2003 9:00 pm Post subject: Re: Help With Payroll Tax |
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You debit the gross amount of the payroll to expense. Credit the liability accounts. When you pay the taxes, you debit the liability accounts and credit cash.
Forgot to say..you post the net amount of payroll (expense less taxes)to Cash as a Credit. Debits equal Credits. Then when you pay taxes Debit Tax Liability and Credit Cash. Been doing this so long it's automatic but missed a step when I explained it to you.
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