Journalizing Employee Payroll

Definition: The process of recording employee payroll in the general journal. The entry debits Salaries and Wages Expense for gross pay and credits separate li…

The process of recording employee payroll in the general journal. The entry debits Salaries and Wages Expense for gross pay and credits separate liability accounts for each withholding (Federal Income Tax Payable, FICA—Social Security Payable, FICA—Medicare Payable, State Income Tax Payable, health insurance, etc.) and credits Cash or Salaries Payable for the net pay amount.