Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll, one for the employer's share of the taxes.

Question

Quizplus · Accepted Answer

The first entry records the gross wages earned by employees, along with any deductions for taxes and other withholdings, to reflect the net pay to employees. The second entry records the employer's payroll expenses, such as the employer's share of Social Security and Medicare taxes, federal and state unemployment taxes, and any other employer-paid benefits, to accurately reflect the total cost of payroll to the employer.

Two Complete Payroll-Related General Journal Entries Are Recorded Each Pay