Wages Liability

[David Harrison]

On Mon, 18 Oct 2004 09:20:07 -1100, Bill Wisse <wiswp at niue.nu> wrote:

> If you do it like that, it won't show up as a liability.
> Aha, I think I see it now.
> Because GC hasn't got a payroll system you have to create a ( Vendor) invoice
> for this employee for her Hol + Sickpay ( and alter the amount every payday.)
> In this case it will show up as a Liability.
> ( You have to do the same for the money you owe to the  IRD).

Personally, I wouldn't use an invoice as I don't want it to go through
accounts payable.  I would just use the register and split it between
the appropriate accounts.

> Still the question remains : what expense account to use . Mmmmm

In a previous post, you said you created an asset account called Sick
and Holiday pay.  This should actually be a liability account, as you
will probably alway be owing your employees.  The expense account
would be Employee Benefits.  You could post it straight to the Wage
expense account, but that might get confusing when you prepare
whatever slips are necessary for your employees tax returns at the end
of the year (T4's here in Canada).

Hope this helps

Dave