Thank you but I have seen that article - I am looking for specific help on entering the employee payroll taxes (using the payroll tax liability account) When I split the payroll taxes into employer taxes (using the expense account) and employee taxes (using the liability account) I get a negative balance in the liability account. How do I relieve that negative balance. Thank you for the help.
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Hi there I have outsourced payroll as well - They debit our account 3 times - 1 for the 'net salary'; 2 for the service fee; 3 for the pr taxes (EE and ER). I am fine with using their service for all detailed reports. My question is about the 3rd transaction - I record the transaction in the register and split into payroll tax expenditures for the employer portion, and payroll tax liability for the employee portion. Now I have a payroll tax liability account with a negative balance, showing on my B/S. I understand I need to clear the liability. What is the most simplest way to do this and if it is a journal entry, please can you specifically lay out the info like I am a 5 year old. Accrual Basis So here is an EXAMPLE for the part I am having a hard time entering and clearing: on 2/1/19 Payroll Company deducts 1000 for payroll taxes from my checking acct (Employer 200 and Employee 800) for pay period ending 1/31/19. Transaction split of 1000= dr payroll tax expense 200 dr payroll tax liability 800 Now my payroll tax liability shows -800. What do I do exactly to clear this liability? Please lay out the exact journal entry per the example I have given above? Much Appreciated
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