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Level 1

How should we account for payroll payments owed to owner but not paid?

We have had a bit of a cash flow issue, so the owner has decided to not pay himself for a few months.  How do I account for the fact that his salary is still owing, and show it as a current liability? 

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Level 15

Re: How should we account for payroll payments owed to owner but not paid?

create the liability account, salary owed or something

when you do the payroll check, as the last item select that salary owed account and enter the check amount as a negative number

save the zero dollar pay check