What is the basic accounting for payroll?

  • Payroll

Basic payroll accounting involves recording gross wages as an expense; calculating withholdings for taxes and benefits; and tracking net pay to employees. You record payroll taxes owed to federal and state governments as liabilities. When you pay employees; you debit payroll expense and credit cash. When you remit taxes; you debit the tax liability and credit cash. This two-sided accounting ensures your payroll expenses and employee payments stay balanced and documented.

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.