Payroll Journal Entries

This meeting will be in person at ATLAS Green/N Canton Office in their educational room.  Entrance is in the back of the building.

Registration/Meal/Business Meeting – 5:30pm – 6:00pm

Meeting – 6:00pm – 8:00pm

Payroll Journal Entries – Presented by: Georgianne Green & Dee Gray

What are Payroll Journal Entries?

Payroll journal entries are used to record the compensation paid to employees, as well as the associated tax and other withholdings. These entries are then incorporated into an entity’s financial statements through the general ledger. The key types of payroll journal entries are noted below.

Initial Payroll Entry

The primary payroll journal entry is for the initial recordation of a payroll. This entry records the gross wages earned by employees, as well as all withholdings from their pay, and any additional taxes owed to the government by the company.

Accrued Wages Entry

There may be an accrued wages entry that is recorded at the end of each accounting period, and which is intended to record the amount of wages owed to employees but not yet paid. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. This entry may be avoided if the amount is immaterial.

Manual Payments Entry

A company may occasionally print manual paychecks to employees, either because of pay adjustments or employment terminations.