Journal Entry Distributions—Payroll Entry

Payroll transactions are posted to the General Ledger in the following manner:

Transaction	Debits	Credits
Gross Wages	Salary and Wage Expense	Cash
Employee-paid taxes	Cash	Employee Payroll Tax Payable
Employer-paid taxes	Employer Payroll Tax Expense	Employer Payroll Tax Payable
Employee-paid deductions	Cash	Deduction (Benefit) Expense
Employer-paid deductions	Deduction (Benefit) Expense	Deduction (Benefit) Payable
Commission or Bonus	Commission/Bonus Expense or Salary and Wage Expense	Cash
Employee Advances/Loans	Employee Advances (Other Current Asset)	Cash
Employee Payment of Advance/Loan	Cash	Employee Advances (Other Current Asset)