Payroll linked accounts

Using Linked Accounts Overview > Why linked accounts? > Payroll linked accounts

Here is a list of the linked accounts that are used for payroll transactions, along with information about where the linked accounts will be used:

This account is used to track the amounts you pay employees. This account appears as a default entry for the transactions you enter in the Pay Employees window, but you can choose another chebank account. When you create a cheque, this account (or the chebank account you select instead of it) will be credited by the amount of the transaction, and your linked Wages Expense Account (or the Wages Expense account assigned to the employee, if you've assigned another account to the person) will be debited. In effect, the chebank account will be decreased and the wages expense account will be increased. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)

The account you select here must have been assigned chebank or credit card privileges in the Edit Accounts window.

This account is used to track the expenses you pay on behalf of your employees. The account you enter here will appear as a default entry for new employer expense records, but you can change the account using the Employer Expense Information window if you like.

Whenever an employer expense using this linked account is included on an employee's cheque, this account will be debited and the linked Withholding Payable Account assigned to the employer expense will be credited.

The account you select here must have been assigned chebank privileges in the Edit Accounts window.

This account is used to track the wages you pay to your employees. The account you enter here will appear as a default entry for new employee records, but you can change the account for individual employees using the Employee Payroll Information window if you like. You might use separate wage expense accounts for people in different departments, for example, or employees in different locations.

Whenever a wage using this linked account is included on an employee's cheque, this account will be debited and the chebank account selected for the cheque will be credited. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)

This account is used to track the liabilities your company incurs for employee deductions and employer expenses. The account you enter here will appear as a default entry for new deduction and expense records. You can change the account for individual deductions using the Deduction Information window, if you like; you can select a different account for expenses using the Employer Expense Information window.

Whenever a deduction or expense using this linked account is included on an employee's cheque, this account will be credited and the expense account assigned to the deduction or expense will be debited.

Click below for the step-by-step procedure:

Click below for the step-by-step procedure:

To change the default Payroll linked accounts

To change the Wages Expense linked account for individual wages

To change the Payable linked account for individual deductions

To change the Expense and Payable linked accounts for individual employer expenses

To change the Payable linked account for individual payroll taxes

Linked Accounts Overview - Payroll linked accounts