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1. • CommentAuthorstudent50
   • CommentTimeOct 1st 2008

    
   can you please explain to me general journal payroll entry, is any way to make is easily and why payroll exchange account is involved.thank you in advance
   
   Account Debit Credit
   
   101 ∑Payroll 44,020.48
   112 ∑ Payroll Exchange 27,719.95
   227 ∑ Payroll Garnish payable 252.28
   211 ∑ FICA Withheld 2,351.10
   213 ∑ Medicare Withheld 654.19
   212 ∑ Federal Withheld 5,668.90
   216 ∑ NYS Tax Withheld 2,066.61
   221 ∑ NYC Tax Withheld 1,140.71
   507 ∑ SUI 230.90
   505 ∑ FICA/Medicare 3,005.29
   228 ∑ Flex Spending 400.82
   564 ∑ Payroll -other fees 529.74
   44,020.48 44,020.48
   
   501 ∑ Gross Payroll 46,239.53
   112 ∑ Payroll Exchange 31,372.83
   211 ∑ FICA Withheld 2,351.10
   213 ∑ Medicare Withheld 654.19
   212 ∑ Federal Withheld 5,668.90
   216 ∑ NYS Tax Withheld 2,066.61
   221 ∑ NYC Tax Withheld 1,140.71
   504 ∑ Disability 32.40
   242 ∑ 403(b) Plan 1,367.41
   432 ∑ Transitchek 651.00
   227 ∑ Payroll Garnish payable 339.26
   432 ∑ Transitchek 70.25
   506 ∑ Health Insurance 51.58
   228 ∑ Flex Spending 400.82
   506 ∑ Health Insurance 72.49
   46,239.53 46,239.53
2. • CommentAuthormfargen
   • CommentTimeOct 1st 2008 edited

    
   The amount you showed in your first example, was net pay (or paycheck amount) under the exchange account category. I would presume that allows the gross payroll debit to balance against the credits (all your categories of deductions). I'm not sure how your particular accounting system handles payroll, as the system I used was for a cash basis business with the checkbook as the backbone of the accounting software. Therefore we didn't really have payroll exchange.

   Thankful People: student50
3. • CommentAuthormfargen
   • CommentTimeOct 2nd 2008

    
   Also remember the company contribution to FICA is not deducted from the employee's pay. However, it does contribute to employer's expenses. I'm not sure in your example how you handled this because the Payroll exchange appears to have included your deduction for company FICA and employee FICA. I think the Gross payroll should not include the company FICA (put it under taxes). This is qualified by fact that I'm not a CPA. Maybe others could respond?

   Thankful People: student50
4. • CommentAuthorstudent50
   • CommentTimeOct 5th 2008

    
   why are you saying that FICA doesn't deducted from employees pay, as it one of the rules that FICA is deducted from employees' pay , and employer should match that amount.
5. • CommentAuthormfargen
   • CommentTimeOct 6th 2008

    
   Your payroll exchange category is ambiguous, but appears to be the net pay minus the comp FICA and unemployment taxes (both of which are not to be generally deducted from the employee payroll). I may well be misinterpreting this, as you do appear to be aware of the employer match (i.e. comp FICA).