Payroll Taxes

[Derrick Hudson]

On Sat, Jan 05, 2008 at 09:07:42AM -0500, Matt Burkhardt wrote:
| I'm using gnucash for a small business and now I'm trying to figure out
| a better way to handle payroll withholding taxes.  Right now, I have
| Liability / Accounts Payable / Taxes / Federal / Employer and Employee
| accounts - that works out pretty well for me to pay the tax man each
| quarter.  I expense the Employer tax contributions so it's pretty simple
| to see what is paid out from the company's perspective.  However, I'm
| having problems on how to deal with the employee withholding taxes.
| 
| I can't expense them - since they're not an expense to the company.  The
| liability goes down to $0 after I pay off each quarter.

This is correct.

| How would I enter it so that I could just run a report out of
| gnucash to get the employee withholding amounts?

One option would be to see if half of the Cash Flow report gives you
what you want.  All of the credits to Liability/.../Employee is the
amount withheld.  Just ignore the debits half of the report.

Another option would be to add a sub-account under "Salaries Expense"
for "Employees' Taxes Withheld".  Then when you record the payroll,
you can note the tax withholding separately.  The total (including the
sub-account) of Salaries Expense would show your company's actual
expense, and the sub-account would show your employees' expense.

-Derrick

PS.  Bear in mind that my only experience with payroll accounting is
from the Accounting 101 course I took last semester.  I don't manage
a business.

-- 
All a man's ways seem innocent to him,
but motives are weighed by the Lord.
        Proverbs 16:2
 
www: http://dman13.dyndns.org/~dman/            jabber: dman at dman13.dyndns.org
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: application/pgp-signature
Size: 189 bytes
Desc: Digital signature
Url : http://lists.gnucash.org/pipermail/gnucash-user/attachments/20080110/98e88462/attachment.bin