Creatively accounting for Payroll

AdeStudee

I am a customer in Trinidad and Tobago, and I enjoy the convenience of Wave Accounting. However, you do not offer the payroll option to us. Is there a suggestion as to how I can creatively ACCOUNT for that?

JordanD

@AdeStudee typically, some sort of Payroll software or external work will be necessary to ensure that you are correctly deducting applicable tax liabilities from your employees' pay, as well as calculating the employer portions of tax liabilities. In saying this, if you do complete your payroll externally from Wave, you can track this in your Wave accounting by creating a journal transaction for each payroll that includes the wages, employee portions of taxes, employer portion of taxes, among other line items. The journal entry can vary from business to business, however, in Wave, the journal entries typically look like this:

Debit - Expense Account: Payroll - Salary & Wages
Debit - Expense Account: Payroll - Employer's Share of Benefits
Credit - Liability Account: Payroll Liabilities
Credit - Asset Account: Checking account

This is a rough guideline, so make the appropriate changes, but I hope that this would be a good place to start for you!

AdeStudee

thank you