Employee payroll - Deductions

[Brucanna]

@Tut

where the “outside entity” I mentioned would be an internal account.

That is completely confusing. Since when has an outside entity (tax authority, superannuation, union) been the equivalent to an internal P&L account.

@Tut

The transferring by journal entry is equivalent to a payment transaction that would go to a true outside entity. Same number of entries.

And therein lies the problem, if the Payroll Deduction Item could be posted directly to the P&L account then the Journal wouldn’t be required, therefore only one entry required not the two as forced by Manager.

@Tut

the employee has earned something as part of total compensation:

The employees total compensation has absolutely nothing to do with - the employee earns 1000 per month regardless of any deductions. He has the choice of renting onsite or offsite - the rent payment (private landlord or boss) is a completely separate unrelated transaction to their earnings. Same with the car, use their own or a company car, the payment is unrelated to their to their earnings.

These deductions are not something which have been added into a package up front and then subsequently adjusted out - they are stand alone independent transactions. Why does Manager not recognise the existence of such deduction types and allow them to be posted directly.

For an extensive discussion on this subject read this topic

Payslip deductions are showing as "Payroll liabilities"

Payslip deductions are showing as “Payroll liabilities” when they should not be. I pay my staff via Western Union and it’s the member of staff who pays for the Western Union fee. I list the Western Union fee as a Deduction on the payslip. Then I note the NET pay and that’s the exact amount I record as an expense. However all of the deductions are showing as “Payroll liabilities”. Have I done something wrong?