what are the journal entries for processing a salary advance deduction where there is no cash movement?
ephenberg asked:
that is whereby the money is just deducted from the payroll and there is no cash physical cash movement .
One Response to “what are the journal entries for processing a salary advance deduction where there is no cash movement?”
Payroll journal entries are complex. The deduction will be part of this entry.
You should have previously debited "Advance to Employee" and credited "Cash"
At a mininum, your p/r entry will now include Debit to "Salary expense", Debit to "Employer Payroll Tax Expenses", Credit to "Cash", Credit to "Payroll Taxes Payable (employer and employee)", and a Credit to "Advance to Employee" for the portion you w/h in this pay.