Accounting & Bookkeeping & Small Business Forum

maxzzzz · Joined: 20 Aug 2008 Posts: 1

Our fiscal year ended 06/30/08. Our pay period was from 06/20/08 - 07/05/08, so 7 business days of the pay period were in 07-08, and 4 business days of the pay period are in 08-09.

1) The gross pay amounts were already calculated for each time period based on the employees' timesheets, but how do I allocate payroll taxes and benefits between the 2 fiscal years? 7/11ths for 07-08 and 4/11ths for 08-09?

2) The payroll file was submitted to our payroll company on 07/09/08, so we won't see the debit to our account until this current fiscal year, but the majority of it was for the prior fiscal year.

3) Do I need to do something with Accrued Vacation?

What are my entries, please???

Ahshucks · Joined: 22 May 2008 Posts: 50

Unless you can identify the actual hours worked in each period, you may use your suggested allocation .... it should be adequate enough for an audit. You'll have to do an accrual entry in the old period for the payroll, hopefully an automatically reversing entry that will wipe out that portion in the new year.

You should adequately accrue for all payroll costs depending on the policies in effect, including vacation, sick, retirement, statutory benefits, etc...