paycheck question

[Jeff Kletsky]

I'm not an accountant or tax attorney. Given that, you can take my 
answer as you wish.

I wanted to track:
* total salary paid
* taxable portion of salary
* pre-tax deductions portion of salary
* Where it all went

I made a decision that, for me, tracking total salary as well as the 
pre-tax portion was sufficient, as I could subtract the two come tax 
time. If you use a professional tax preparer or accountant, you should 
ask them on this all anyways.

So, super-simplified, my paycheck-related accounts look something like:

Income:Salary
Income:Salary:Pre-Tax

Expense:Tax
Expense:S125 Benefit

Asset:Bank Account
Asset:401(k)

and a paycheck looks something like:

Income:Salary            1000   -- my total pay

Expense:Tax              -300   -- taxes just an expense

Income:Salary            -100   -- Section 125 benefits
Income:Salary:Pre-Tax     100   -- are paid w/ pre-tax dollars
Expense:S125 Benefit     -100

Income:Salary            -200   -- 401(k) deposits are also
Income:Salary:Pre-Tax     200   -- paid w/ pre-tax dollars
Asset:401(k)             -200

Asset:Bank Account       -400   -- and the rest goes in my bank




At the end of the transaction:

Income:Salary             700
Income:Salary:Pre-Tax     300

Expense:Tax              -300
Expense:S125 Benefit     -100

Asset:401(k)              200
Asset:Bank Account        600

While I could have made Income:Salary:Taxable and split all my salary up 
that way, then used Income:Salary as a roll-up, it would have meant one 
more pair of entries on each paycheck. I haven't decided if I want to do 
that or not -- it will depend on how budgeting works in 2.4.x.

On 1/29/10 10:40 PM, Jeffrey Schneider wrote:
> Hi,
> I am really enjoying gnucash, thanks.
> I am using a standard household file.
> When entering a paycheck with all the deductions,
> where do I place a deduction for my retirement contributions?
> Thanks,
> Jeff
>
>