The journal entry to record the payroll for a period will include a credit to Salaries and Wages Payable for the gross

Question

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The credit to Salaries and Wages Payable for the gross amount less all payroll deductions is the correct entry to record the payroll for a period. This is because the company owes its employees the gross amount earned, but the deductions such as taxes and voluntary deductions need to be withheld and remitted to the respective agencies. Therefore, the company only owes the employees the net amount after deductions, which is the gross amount less all payroll deductions.

The Journal Entry to Record the Payroll for a Period