Expenses and pre-taxed salaries: proper way to enter them?
Wed, 13 Sep 2000 14:20:48 -0700
Andrea Borgia writes:
> When you're paid for a job, you get back the expenses too. Is it
> correct to enter the reimbursement in a subaccount of Income?
> I have filed each expense in a subaccount of Expense, so a possible
> answer is yes, but on the other hand it is not a real income, it's
> just my money coming back.
> A related question: how do you file a check for the net payment of a
> job? Straight away from your checking account to Income or in Income
> in part from the checking account and in part to the taxes account ?
> I'd like my "job" account to show only taxable (not taxed) income, but
> I also want to keep a count of the taxes I've paid.
Taxable income is not the same as not taxed income. Income that you
have already have paid taxes on in the form of withholding is still
taxable income and must be reported.
> I know much depends on what I want my accounting to tell me, but I'd
> like to know how the professionals deal with this situations.
Well, I'm not a professional accountant, but the way I enter my
paycheck is with a multi-split transaction from Income to Checking
and to multiple Tax accounts, and to a 401K.