What Type of Journal Shold Be Used to Record Accrued Payroll Taxes?
If the employer has in-house payroll integrated into the accounting system, only adjusting journal entries are used to record accrued payroll liabilities. For outsourced payroll, employers record the monthly payroll entries and record accrued payroll tax entries during a month end and year-end closing. Cash basis employers will record the payroll expenses and liabilities for the current period only.
