# Payroll

**URL:** <https://forum.manager.io/t/payroll/785>\
**Category:** Uncategorized\
**Created:** [April 18, 2014, 8:24am UTC](https://forum.manager.io/t/payroll/785 "2014-04-18T08:24:08Z")\
**Posts on this page:** 1\
**Showing post:** 9

<div class="post-metadata">

**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\
**Post date:** [June 25, 2014, 10:57pm UTC](https://forum.manager.io/t/payroll/785/9 "2014-06-25T22:57:04Z")

</div>

You should create new expense account called `Wages & Salaries` or something like that. Then when paying employee, categorize the payment under this account.

Obviously then there are deductions, entitlements etc. which should be recorded as journal entries.

For example payroll tax would be a deduction so you would have liability account called `Payroll tax` or something similar. When paying employee wages, you pay only net amount. Tax portion of wages should be recorded as journal entry where you credit `Payroll tax` account and debit `Wages & Salaries` expenses.

There is a bit more to it but generally it just follows double-entry accounting principles how money is moving between accounts based on what is really happening. So I’m not really saying anything new here.

---

_[View the full topic](https://forum.manager.io/t/payroll/785)._