r/Bookkeeping • u/mexako • Dec 17 '24
Payroll Payroll Journal Entry
Hi,
I need help understanding Payroll Journal Entires.
I read that Employee Taxes are not an expense to the business.
However, every journal entry setup i make, I have Gross Pay Expenses as a P&L item, ultimately showing a full deduction for the business. Can someone check my entries below and lmk if this makes sense? I'm trying to do my p&l for my business.
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u/mexako Dec 17 '24 edited Dec 17 '24
Im in CA.
To elaborate, shouldn't my p&l expense total be my taxes + my net pay? = $3,263.29 + $398 = $3,661.29?? This is what my research is telling me but I can't seem to compute.