Accounting entry for Employee payroll for sole proprietor

RajN

More Journal entry: Expense transaction: Debit Asset account, withdrawal, Credit -Category: Payroll Wages and Salaries; Debit Category Payroll Wages and Salaries and Credit Employee. Is the Employee set up as an Expense Account or as an Income account? Next step , you want to debit payroll tax from this employee (do this manually as an accounting transaction versus using payroll software). What is the accounting entry for this?

AlexL

Hey @RajN , this is somewhat more complex accounting which I'm afraid we can't advise on. Please reach out to your accountant or CPA who can properly advise on the best way to handle accounting for the pay of your employees.