When using journal entries for manual payroll tracking how did everyone set up the accounts?
- for gross wages
- for company contributions
- payroll liabilities
- bank account for net pays.
And then when inputting the amounts in a journal this is my understanding:
Gross Wages : Debit
Company contributions: Debit
Payroll Liabilities (the sum of the the tax, CPP, EI deductions) : Credit
Net pays: Credit
Doing it this way always leaves a discrepancy in the amount of the company contributions. I think something may be set up wrong but there is no Canadian breakdown on how to set up the accounts.
