23 July 2015
Category: Uncategorized
23 July 2015,
 0

Every business that has employees takes on the expense of payroll. Payroll is much more than just one expense in the Chart of Accounts and thus needs to be broken down when making entries to track the specific accounts. These entries are complex and confusing to someone who is not experienced in the multiple parts of each entry. Inaccurate entries cost you more in the future because it then becomes necessary to hire someone to fix all the entries or pay your CPA for extra time to do it. In order to properly enter these transactions and decrease the tax liability, you must make sure the entries are made properly and accurately. Payroll companies take care of the figures for the taxes that come out of each employees check as well as the payroll taxes you have to pay as the business owner. With the figures they give you, the entries must be able to reflect what the payroll company is telling you will be coming out so you can account for everything.

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