Payroll GL And Journal Entries

HRM and Payroll

Payroll GL And Journal Entries

Riya

Aug 30, 2022 - 6 mins read

Payroll Processing is also perform the Respective Journal Entry posting on the System, We can configure it with allowances and System and GL setup, With that the system will help you to handle it. It actually needs to cover Payroll, Loan, and Advance Salary GL entries.

Payroll GL Entry

This is also an optional entry, some of the accountants are not prefer this to keep an temporary account to hold the payable expenses and make payment from it.

Journal Entry for Payroll

Account	Debit	Credit
2204 - Salary Account - Current Liability (Expenses Payable)	15,000.00
5410 - Salary Payable Account - Payroll Expense		15,000.00
Total	15,000.000	15,000.000

Bank Payment GL Entry

When we process payout to employees, we have to make this GL entry, with help of TamilAccounting, its easy with bank payments from Payroll inquiry.

Account	Debit	Credit	Memo
5410 - Wages & Salaries - Payroll Expense	15,000.00		TA002/2022
1066 - Bank Account - Current Assets		15,000.00	1 Employee(s) Payout Processed
Total	15,000.000	15,000.000

Loan Entry

When a new loan processed or agreed to provide it to employees, It also has to make some GL entry to record the payout to of the loan principle amount. This also connected with bank payout and calculated EMI or interest.

Account Code	Account Name	Debit	Credit	Memo
1025	Employee Loan - Current Assets	5,045.900		TA003/2022
4440	Interest - Other Revenue		45.900	TA003/2022
1066	BANK ACCOUNT- Current Assets		5,000.000	Employee Loan Amount
Total		5,045.900	5,045.900

Loan Recollection

It can be done in two ways. 1. Through the Salary . 2. Direct Repayment. But both can be made the GL entry almost similar.

Account	Debit	Credit	Memo
1025 - Employee Loan - Current Assets		504.590
1066 - Bank Account - Current Assets	504.590		Employee Loan Repayment
Total	504.590	504.590

Advance Salary

Loan and Advance salary are two similar modules, but loan used for long term with added interest. Whereas the advance salary is a short term one and done in one payroll month cycle.

Account Code	Account Name	Debit	Credit	Memo
5438	Salary Advance - Payroll Expenses	3,500.000		003/2022
1066	BANK ACCOUNT - Current Assets		3,500.000	Employee Advance Salary
Total		3,500.000	3,500.000

Apart from that CTC or Accruals

Suppose if you are doing the insurance, or Any accrued payments, which will be paid by end of the year. we have to use it to accrued from allowance setup.