When I have a payment I usually show a value of cash paid out to the employee but account the deductions to be credited to a holding account as a credit balance. ex,
Debit Salary 10000
Credit Cash 9500
Credit Social Security 500
(I am trying to simplify the transaction ).
Presently I use the Purchase Invoice menu to do it which I know is wrong but it is because I couldn’t figure out what else to use.
What I do is I will let it deduct cash on hand and then I will enter Salaries and wages 10000 and then Social Security -500 to get the net effect of paying out 9500 only…but when I see the Liabilities on the Balance sheet it will show -500 which is not what I want. I need to know how to recitfy this
Maybe somebody can show me how this is done ?