Knowledge Base
Typical Payroll Setup
| Income Items | Debit | Credit |
| Gross Salary | Expense Account | Asset Account |
| Housing Allowance | ie: Salary Expense | ie: Checking |
| Car Allowance | (5000 + range) | (1000 range) |
| Withholding Items | Debit | Credit |
| Federal Withholding | Asset Account (Bank) | Liability Account |
| State Withholding | ie: Checking | ie: Taxes Payable |
| FICA Withholding | (1000 range) | (2000 range) |
| Medicare Withholding | ||
| Employer Liability Items | Debit | Credit |
| FICA Matching | Expense Account | Liability Account |
| Medicare Matching | ie: Tax Expense | ie: Taxes Payable |
| (5000 + range) | (2000 range) |
Created: 04/12/2004
Last updated: 07/25/2021
Last updated: 07/25/2021