How best to record wages I owe myslef?

[Jane Knichel-Aldea]

Hi John:

If you want to record the expense and income in the period that they apply
to, not when cash changes hands. Then you should record the liability.
Also, if the company does owe the money to you for wages, then you should
definitely record the liability.

For the wages, you would record:
Debit (increase) to wage expense
Credit (increase) to wages payable, a liability.

When you are ready to pay yourself you would record:
Debit (decrease) to wages payable
Credit (decrease) to cash

Hope that helps,
Jane

Best Regards,
Jane Knichel Aldea
201-725-3507

On Wed, Jan 11, 2017 at 5:46 AM, Katie Eldridge via gnucash-user <
gnucash-user at gnucash.org> wrote:

> Hi John,
>
> In a similar situation, I marked the liability account as 'Director's
> loan', as in effect it's an interest free loan from yourself to the company
> (assuming that wages are required to be paid, as opposed to dividends which
> are taken only when company finances permit).  Obviously you would want to
> check with your accountant that this is OK for your jurisdiction.
>
> Hope that helps.
>
> On 10/01/17 21:34, John Whitmore wrote:
>
>> I'm running a small company, just me on the wage books. I'm paying myself
>> as
>> a normal employee and my company is paying the various taxes out of those
>> wages.
>>
>> The thing is that at times the company can't afford to pay those wages,
>> waiting for customers to pay. So I'm paying the tax on my salary but I'm
>> not
>> actually paying myself. I consider my company owes me that salary and
>> it'll be
>> paid when customers pay.
>>
>> My question is how best to record this in GnuCash. I could use Accounts
>> Payable
>> and make up a ficticious vender. But I'm not sure that abstraction works
>> as I
>> might go a few months with the owed money growing a bit. I was thinking
>> that
>> it's maybe closer to VAT or Sales Tax and that it's better recorded as a
>> liability. My problem with that is that I'll end up with a current
>> account,
>> Expense:Wages, and Liability:Wages which is going to take a bit of
>> juggling.
>>
>> If I have this right at the end of the month I could take money from
>> Expense:wages to Liability:wages and then when the companies ship comes in
>> transfer money from CurrentAccount to Liability:Wages.
>>
>> Sorry this is probably a stupid question, as everybody says here "I'm not
>> an
>> account but..." so anyhow just though I'd check that a Liability is a
>> good way
>> to do things. Thanks for any advice for all the non accountants ;-)
>> _______________________________________________
>> gnucash-user mailing list
>> gnucash-user at gnucash.org
>> https://lists.gnucash.org/mailman/listinfo/gnucash-user
>> -----
>> Please remember to CC this list on all your replies.
>> You can do this by using Reply-To-List or Reply-All.
>>
>>
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>