[sjdenton]

How do I record the following transaction in a journal entry? ADP ran our payroll, they did not pay any of the payroll taxes. I know that I need to post the gross wages to the wage expense account the taxes withheld from the employees to the payroll tax liability account. My question is what do I do with the employer portion of the payroll taxes that ADP withheld from our account in the following month.

[morgaine300]

The extra taxes are going to be some form of tax expense to the company. I don't know whether they're lumped together in something like "Payroll Tax Expense," or whether they are separated into FICA Expense, FUTA Expense, etc. And then, just like with the deductions, they're put into the same type of liability accounts.

All of the taxes or other deductions and expenses are due to some place, whether they were deducted from a check or whether they are extra expenses to the company. i.e. if you have a FICA Payable account, both the deducted part and the employer's matching part would end up in that account. Because they're all due and have to be paid in the future.

[MaggieMouse]

Dr. Payroll Tax Expenses
Cr. Tax Payable