# How do I record a payroll run in my books — the journal entry for gross wages, employee withholdings, employer taxes and net pay?
- **[United States (article is written to the US tax regime — refers to the IRS and to 401(k) plans) · Employers that run a payroll for employees]** The initial payroll recordation entry records three things: the gross wages earned by employees, all withholdings from employee pay, and any additional taxes the company itself owes to the government. → [CG-MCE-048#S01](#s-CG-MCE-048-S01)
- **[United States · employers with employees]** Net pay is what remains after withholdings are deducted from an employee’s gross pay. → [CG-MCE-048#S06](#s-CG-MCE-048-S06)
- **[United States · companies owing matching portions of payroll withholding taxes]** Some portions of payroll withholding taxes must be matched by the company, and those matching portions are both an expense of the company and a liability. → [CG-MCE-048#S09](#s-CG-MCE-048-S09)
- **[QuickBooks Online · US (en-US) help article, updated 8/3/2026 05:40 · United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI) · QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks)]** The cash side of the entry is the checking account the employees are being paid from, and net wages are entered on it as credits with each individual paycheck on a separate line rather than combined. → [CG-MCE-048#S26](#s-CG-MCE-048-S26)
## What this page establishes
- Employer expense against money you are only holding for somebody else — Partly established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation.)
- Which state payroll taxes the employer funds and which come out of the employee's pay — Established
- Deductions you withhold and pass on to a third party — Established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.)
- What your payroll service reports for a completed run — Not established
- Where the cost of running payroll belongs — Not established
- The dating convention for an ordinary run — Established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation.)
- What a completed payroll run is made of, and what each piece is in your books — Partly established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation.)
- Why the expense is gross wages, not the cash you paid out — Partly established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.)
- The payroll taxes the employer pays on top of what is withheld — Established (Required authority: authoritative professional or accounting standard, primary regulator or government. Highest achieved: high quality professional secondary reference, official platform documentation, primary regulator or government.)
- Health insurance, retirement and other deductions your employees elected — Established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.)
- Turning the run report into the entry: which figure goes to which account — Established
- The cash side: making the entry match what actually hits the bank — Established
- The payroll service's own fee — Not established
- One summary entry per run, or per-employee detail? — Partly established (Required authority: official platform documentation. Highest achieved: official platform documentation.)
- Which period the entry belongs in — Established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation.)
- Checking the entry before you post it — Established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation.)
- Splitting wage cost across jobs, departments or locations — Partly established (Required authority: official platform documentation. Highest achieved: official platform documentation.)
## What a completed payroll run is made of, and what each piece is in your books
- The initial payroll recordation entry records three things: the gross wages earned by employees, all withholdings from employee pay, and any additional taxes the company itself owes to the government. _(jurisdiction: United States (article is written to the US tax regime — refers to the IRS and to 401(k) plans), entity_scope: Employers that run a payroll for employees)_ `CG-MCE-048#S01`
> “This entry records the gross wages earned by employees, as well as all withholdings from their pay, and any additional taxes owed to the government by the company.” — [AccountingTools, Inc. (Steven Bragg) — Payroll journal entries](https://www.accountingtools.com/articles/payroll-entries), 2026-03-04; Section "Initial Payroll Entry", second sentence. Verified 2026-09-09.
- The same entry also carries credits to a number of accounts: accounts detailing the liability for payroll taxes not yet paid, and the amount of cash already paid to employees as net pay. _(jurisdiction: United States (article is written to the US tax regime — refers to the IRS and to 401(k) plans), entity_scope: Employers that run a payroll for employees)_ `CG-MCE-048#S02`
> “There will also be credits to a number of accounts, each one detailing the liability for payroll taxes that have not been paid, as well as for the amount of cash already paid to employees for their net pay.” — [AccountingTools, Inc. (Steven Bragg) — Payroll journal entries](https://www.accountingtools.com/articles/payroll-entries), 2026-03-04; Section "Primary Payroll Journal Entry", third sentence. Verified 2026-09-09.
- For an amount withheld from employee pay the employer must record a current liability in its accounting records. _(jurisdiction: United States, entity_scope: employers with employees, accounting_basis: accrual basis of accounting (financial statement reporting))_ `CG-MCE-048#S03`
> “The employer must record a current liability in its accounting records for the amount withheld” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Payroll Withholdings: Taxes & Benefits Paid By Employees", second bulleted effect on the employer. Verified 2026-09-09.
_Partly established. Established: the components of a completed payroll run (S01, S07). Missing: classification of each component as employer expense, an amount withheld from employees and owed onward, or a cash movement._
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation._
## Why the expense is gross wages, not the cash you paid out
- The "gross" amount is the pay an employee has earned before withholdings are made, the examples of withholdings given being an open list (taxes, donations to United Way, savings plans, etc.). _(jurisdiction: United States, entity_scope: employers with employees, conditions: the withholding examples are illustrative, not a closed list)_ `CG-MCE-048#S05`
> “The “gross” amount refers to the pay an employee has earned before withholdings are made for such things as taxes, donations to United Way, savings plans, etc.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Salaries and Wages", subsection "Salaries". Verified 2026-09-09.
- Net pay is what remains after withholdings are deducted from an employee’s gross pay. _(jurisdiction: United States, entity_scope: employers with employees)_ `CG-MCE-048#S06`
> “Net pay is the amount that remains after withholdings are deducted from an employee’s gross pay.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Net Pay". Verified 2026-09-09.
- The journal entries illustrated record the gross amount of wages, the payroll withholdings, and the employer costs related to payroll. _(jurisdiction: United States, entity_scope: employers with employees, accounting_basis: accrual basis of accounting (financial statement reporting))_ `CG-MCE-048#S07`
> “In this section of payroll accounting we will provide examples of the journal entries for recording the gross amount of wages, payroll withholdings, and employer costs related to payroll.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Examples of Payroll Journal Entries For Wages", introductory sentence. Verified 2026-09-09.
- Withholding taxes and other deductions from employees’ paychecks reduces the amount paid to employees on payday. _(jurisdiction: United States, entity_scope: employers with employees)_ `CG-MCE-048#S08`
> “The amount paid to employees on payday is reduced” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Payroll Withholdings: Taxes & Benefits Paid By Employees", first bulleted effect on the employer. Verified 2026-09-09.
_Partly established. Established: the arithmetic identity that links gross, withholdings, deductions and net pay (S06). Missing: why gross wages rather than net pay is the expense._
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference._
## Employer expense against money you are only holding for somebody else
- See above: The initial payroll recordation entry records three things: the gross wages earned by employees, all withholdings from employee pay, and any additional taxes the company itself owes to the government. ([CG-MCE-048#S01](#s-CG-MCE-048-S01))
- See above: For an amount withheld from employee pay the employer must record a current liability in its accounting records. ([CG-MCE-048#S03](#s-CG-MCE-048-S03))
- Some portions of payroll withholding taxes must be matched by the company, and those matching portions are both an expense of the company and a liability. _(jurisdiction: United States, entity_scope: companies owing matching portions of payroll withholding taxes)_ `CG-MCE-048#S09`
> “There are matching portions of payroll withholding taxes that are both an expense of the company and a liability.” — [AccountingTools, Inc. (Steven Bragg) — Are payroll withholding taxes an expense or a liability?](https://www.accountingtools.com/articles/are-payroll-withholding-taxes-an-expense-or-a-liability.html), 2026-03-27; Section “Taxes Requiring a Matching Payment”, first sentence (TEXT.txt line 89). Verified 2026-09-09.
_Partly established. Established: the components of a payroll run (S01, S07); the employer's own payroll taxes recorded as an expense of the employer (S09, S11); the employer's own payroll taxes recorded as a separate obligation carried until it is remitted (S57); that obligation being distinct from the amounts withheld from employees (S01, S12). Missing: which components are employer expense as against amounts withheld from employees and owed onward to a third party._
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation._
## The payroll taxes the employer pays on top of what is withheld
- The social security tax and the Medicare tax both require a matching payment by the company, in addition to the portions withheld from employees. _(jurisdiction: United States, entity_scope: companies paying employees subject to social security and Medicare tax)_ `CG-MCE-048#S10`
> “Both the social security tax and the Medicare tax require matching by the company.” — [AccountingTools, Inc. (Steven Bragg) — Are payroll withholding taxes an expense or a liability?](https://www.accountingtools.com/articles/are-payroll-withholding-taxes-an-expense-or-a-liability.html), 2026-03-27; Section “Taxes Requiring a Matching Payment”, second sentence (TEXT.txt line 89). Verified 2026-09-09.
_Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._
- For the matched amount, a company must debit a payroll tax expense account and credit a liability account. _(jurisdiction: United States, entity_scope: companies recording their matching portion of payroll taxes, conditions: applies to the extent of the matched amount)_ `CG-MCE-048#S11`
> “Thus, to the extent of the matched amount, a company must debit a payroll tax expense account and credit a liability account.” — [AccountingTools, Inc. (Steven Bragg) — Are payroll withholding taxes an expense or a liability?](https://www.accountingtools.com/articles/are-payroll-withholding-taxes-an-expense-or-a-liability.html), 2026-03-27; Section “Taxes Requiring a Matching Payment”, third sentence (TEXT.txt line 89). Verified 2026-09-09.
_Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._
- Although the federal unemployment tax is based on employee salaries and wages, the whole tax is paid by the employer and nothing is withheld from the employee for it. _(jurisdiction: United States, entity_scope: employers with employees)_ `CG-MCE-048#S12`
> “Even though the federal unemployment tax is based on employee salaries and wages, the entire tax is paid by the employer. There is no withholding from an employee’s salary or wages for the federal unemployment tax.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Payroll Taxes, Costs, and Benefits Paid By Employers", item 4 "Federal unemployment tax". Verified 2026-09-09.
_Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._
- Unlike FICA, federal income tax has no employer contribution. _(jurisdiction: United States, entity_scope: employers with employees)_ `CG-MCE-048#S13`
> “Unlike FICA, there is no employer contribution for federal income tax.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Payroll Withholdings: Taxes & Benefits Paid By Employees", item 3 "Federal income tax". Verified 2026-09-09.
_Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._
- Of California’s state payroll taxes, Unemployment Insurance (UI) and Employment Training Tax (ETT) are employer contributions. _(jurisdiction: California, United States (California state payroll taxes administered by the EDD), entity_scope: Employers subject to California state payroll taxes)_ `CG-MCE-048#S14`
> “Unemployment Insurance (UI) and Employment Training Tax (ETT) are employer contributions.” — [California Employment Development Department (EDD) — California State Payroll Taxes - Overview](https://edd.ca.gov/en/payroll_taxes/what_are_state_payroll_taxes/), undated standing agency guidance page on edd.ca.gov; page footer reads “Copyright © 2026 State of California”; Body, under heading “California State Payroll Taxes - Overview”, bullet following “California has four state payroll taxes:”. Verified 2026-09-09.
_Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._
_Required authority: authoritative professional or accounting standard, primary regulator or government. Highest achieved: high quality professional secondary reference, official platform documentation, primary regulator or government._
## Which state payroll taxes the employer funds and which come out of the employee's pay
- See above: Of California’s state payroll taxes, Unemployment Insurance (UI) and Employment Training Tax (ETT) are employer contributions. ([CG-MCE-048#S14](#s-CG-MCE-048-S14))
- California has four state payroll taxes. _(jurisdiction: California, United States (California state payroll taxes administered by the EDD), entity_scope: California state payroll tax system as described by the EDD)_ `CG-MCE-048#S15`
> “California has four state payroll taxes:” — [California Employment Development Department (EDD) — California State Payroll Taxes - Overview](https://edd.ca.gov/en/payroll_taxes/what_are_state_payroll_taxes/), undated standing agency guidance page on edd.ca.gov; page footer reads “Copyright © 2026 State of California”; Body, under heading “California State Payroll Taxes - Overview”, opening line. Verified 2026-09-09.
_Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._
## Health insurance, retirement and other deductions your employees elected
- Besides mandatory withholdings for taxes and court orders, payroll accounting often includes voluntary amounts that employers may be willing to withhold at the direction of their employees, given as an open list of examples. _(jurisdiction: United States, entity_scope: employers with employees, conditions: 'often', 'may be willing' — voluntary withholding is not stated as required; the list of voluntary withholdings is illustrative ('can include such things as'))_ `CG-MCE-048#S17`
> “In addition to the mandatory withholdings that an employer makes for taxes and court orders, payroll accounting often includes amounts that employers may be willing to withhold at the direction of their employees. These voluntary withholdings can include such things as:” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Payroll Withholdings: Taxes & Benefits Paid By Employees", item 6 "Other withholdings". Verified 2026-09-09.
- Where voluntary withholdings are to be remitted to places outside the company, the amounts withheld are reported on the employer’s balance sheet as a current liability, which is reduced when the employer remits the withholdings. _(jurisdiction: United States, entity_scope: employers with employees, accounting_basis: accrual basis of accounting (financial statement reporting), conditions: the voluntary withholding is to be remitted outside the company)_ `CG-MCE-048#S18`
> “If the voluntary withholdings are to be remitted to places outside of the company (a local charity, for example), the amounts withheld are reported on the employer’s balance sheet as a current liability. When the employer remits the withholdings, the current liability is reduced.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Payroll Withholdings: Taxes & Benefits Paid By Employees", item 6 "Other withholdings". Verified 2026-09-09.
- Where withholdings are for amounts due to the company itself (examples given being the employees’ share of insurance premiums or amounts owed for company merchandise), no remittance is required and the entry instead credits a reduction of the company’s insurance expense or of its receivables from employees. _(jurisdiction: United States, entity_scope: employers with employees, accounting_basis: accrual basis of accounting (financial statement reporting), conditions: the withheld amount is owed to the company rather than to an outside party; the examples given are illustrative ('such as'))_ `CG-MCE-048#S19`
> “If the withholdings are for amounts that are due the company (such as employees’ share of insurance premiums or amounts owed by employees for company merchandise), no remittance is required. Rather, the journal entry reflects a credit that reduces the company’s insurance expense or reduces the company’s receivables from employees.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Payroll Withholdings: Taxes & Benefits Paid By Employees", item 6 "Other withholdings". Verified 2026-09-09.
- A number of additional employee deductions may be included in the primary payroll journal entry; the examples given are 401(k) pension plans, health insurance, life insurance, vision insurance, and repayment of advances, offered as examples rather than a closed list. _(jurisdiction: United States (article is written to the US tax regime — refers to the IRS and to 401(k) plans), entity_scope: Employers that run a payroll for employees)_ `CG-MCE-048#S20`
> “There may be a number of additional employee deductions to include in this journal entry. For example, there may be deductions for 401(k) pension plans, health insurance, life insurance, vision insurance, and for the repayment of advances.” — [AccountingTools, Inc. (Steven Bragg) — Payroll journal entries](https://www.accountingtools.com/articles/payroll-entries), 2026-03-04; Section "Primary Payroll Journal Entry", paragraph following the basic entry. Verified 2026-09-09.
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference._
## Deductions you withhold and pass on to a third party
- See above: Besides mandatory withholdings for taxes and court orders, payroll accounting often includes voluntary amounts that employers may be willing to withhold at the direction of their employees, given as an open list of examples. ([CG-MCE-048#S17](#s-CG-MCE-048-S17))
- See above: Where voluntary withholdings are to be remitted to places outside the company, the amounts withheld are reported on the employer’s balance sheet as a current liability, which is reduced when the employer remits the withholdings. ([CG-MCE-048#S18](#s-CG-MCE-048-S18))
- See above: Where withholdings are for amounts due to the company itself (examples given being the employees’ share of insurance premiums or amounts owed for company merchandise), no remittance is required and the entry instead credits a reduction of the company’s insurance expense or of its receivables from employees. ([CG-MCE-048#S19](#s-CG-MCE-048-S19))
- See above: A number of additional employee deductions may be included in the primary payroll journal entry; the examples given are 401(k) pension plans, health insurance, life insurance, vision insurance, and repayment of advances, offered as examples rather than a closed list. ([CG-MCE-048#S20](#s-CG-MCE-048-S20))
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference._
## Turning the run report into the entry: which figure goes to which account
- After employees are paid outside QuickBooks, a journal entry is created, and the inputs to it are the employees' payroll pay stubs or a payroll report obtained from the payroll service. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S21`
> “After you pay your employees outside of QuickBooks, create a journal entry.
Get your employees' payroll pay stubs or a payroll report from your payroll service.” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online, TEXT.txt lines 59-60. Verified 2026-09-09.
- Four liability accounts, of account type Liabilities, are to be created: 'Payroll Liabilities: Federal Taxes (941/944)', 'Payroll Liabilities: Federal Unemployment (940)', 'Payroll Liabilities: [State] SUI/ETT' and 'Payroll Liabilities: [State] PIT/SDI', with [State] standing for the applicable state. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S22`
> “Create these liability accounts. Select Liabilities as the account type:
Payroll Liabilities: Federal Taxes (941/944)
Payroll Liabilities: Federal Unemployment (940)
Payroll Liabilities: [State] SUI/ETT
Payroll Liabilities: [State] PIT/SDI” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 1: Create manual tracking accounts, TEXT.txt lines 52-56. Verified 2026-09-09.
- Gross wages are entered against the account 'Payroll Expenses: Wages' as a debit. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S23`
> “Add gross wages
Select Payroll Expenses: Wages for the account.
Enter the amount as a debit .” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online - 'Add gross wages', TEXT.txt lines 66-68. Verified 2026-09-09.
- Employer payroll taxes are entered against the account 'Payroll Expenses: Taxes' as a debit. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S24`
> “Add employer payroll taxes
Select Payroll Expenses: Taxes for the account.
Enter the amount as a debit .” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online - 'Add employer payroll taxes', TEXT.txt lines 69-71. Verified 2026-09-09.
- Taxes paid towards 941 or 944 taxes are entered against the account 'Payroll Liabilities: Federal Taxes (941/944)' as a credit. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S25`
> “Add taxes paid towards 941 or 944 taxes
Select Payroll Liabilities: Federal Taxes (941/944) for the account.
Enter the amount as a credit .” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online - 'Add taxes paid towards 941 or 944 taxes', TEXT.txt lines 73-75. Verified 2026-09-09.
- The cash side of the entry is the checking account the employees are being paid from, and net wages are entered on it as credits with each individual paycheck on a separate line rather than combined. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S26`
> “Add net wages
Select the checking account you're paying your employees from.
Instead of combining them, enter each individual paycheck on separate lines. Enter the amounts as credits .” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online - 'Add net wages', TEXT.txt lines 88-90. Verified 2026-09-09.
- Wave records the total gross pay figure to the expense category called Payroll Gross Pay, and includes it on the Profit & Loss report. _(jurisdiction: Wave Payroll as documented in Wave's en-us Help Center article; the pinned text names no country, tax authority or tax regime, so the document reaches only the Wave product in the market that this en-us Help Center article serves., entity_scope: Businesses that run and approve payroll in Wave, platform: Wave (Wave Payroll with Wave accounting))_ `CG-MCE-048#S27`
> “This total is recorded to the expense category called Payroll Gross Pay, and is included on your Profit & Loss report .” — [Wave Financial Inc. (Wave Help Center) — Payroll bookkeeping in Wave](https://support.waveapps.com/hc/en-us/articles/360046489492-Payroll-bookkeeping-in-Wave), no version or edition stated in the pinned text; packet records edition_or_date as not confirmable (host returns HTTP 403 to this harness); pinned snapshot sha256 4987cbb5d6e186f807e2a0bbdcaeb4eeb525dbb2c35fe8196cf5f1bb5e562de9; Section "Understand approved payroll bookkeeping" — list "In an approved payroll journal entry, you can find the:", item "Total gross pay expense before deductions", second sentence. Verified 2026-09-09.
- Wave categorizes the total employee tax owing to third parties on the Account Transactions report under Payroll Liabilities. _(jurisdiction: Wave Payroll as documented in Wave's en-us Help Center article; the pinned text names no country, tax authority or tax regime, so the document reaches only the Wave product in the market that this en-us Help Center article serves., entity_scope: Businesses that run and approve payroll in Wave, platform: Wave (Wave Payroll with Wave accounting))_ `CG-MCE-048#S28`
> “Total employee tax owing to third parties : This represents the amount of employee payroll taxes withheld from paychecks that is owed to the government. This amount is categorized on your Account Transactions report under Payroll Liabilities .” — [Wave Financial Inc. (Wave Help Center) — Payroll bookkeeping in Wave](https://support.waveapps.com/hc/en-us/articles/360046489492-Payroll-bookkeeping-in-Wave), no version or edition stated in the pinned text; packet records edition_or_date as not confirmable (host returns HTTP 403 to this harness); pinned snapshot sha256 4987cbb5d6e186f807e2a0bbdcaeb4eeb525dbb2c35fe8196cf5f1bb5e562de9; Section "Understand approved payroll bookkeeping" — list "In an approved payroll journal entry, you can find the:", item "Total employee tax owing to third parties", whole item. Verified 2026-09-09.
- The user must manually categorize those uncategorized benefit or deduction line items into the correct income or expense accounts. _(jurisdiction: Wave Payroll as documented in Wave's en-us Help Center article; the pinned text names no country, tax authority or tax regime, so the document reaches only the Wave product in the market that this en-us Help Center article serves., entity_scope: Businesses that run and approve payroll in Wave, platform: Wave (Wave Payroll with Wave accounting), conditions: benefits or deductions have been added to the approved payroll)_ `CG-MCE-048#S29`
> “You must manually categorize these into the correct income or expense accounts.” — [Wave Financial Inc. (Wave Help Center) — Payroll bookkeeping in Wave](https://support.waveapps.com/hc/en-us/articles/360046489492-Payroll-bookkeeping-in-Wave), no version or edition stated in the pinned text; packet records edition_or_date as not confirmable (host returns HTTP 403 to this harness); pinned snapshot sha256 4987cbb5d6e186f807e2a0bbdcaeb4eeb525dbb2c35fe8196cf5f1bb5e562de9; Section "Understand approved payroll bookkeeping" — unnumbered paragraph beginning "If you have added benefits or deductions", second sentence. Verified 2026-09-09.
- In the “Map Accounts in Zoho Books” section the user selects a debit account and a credit account for each payroll transaction category; the categories the page names are Compensation, Tax, Benefit and Deduction. _(jurisdiction: United States, entity_scope: businesses/organizations using the US edition of Zoho Payroll together with Zoho Books, platform: Zoho Payroll (integration with Zoho Books), platform_edition: US-EN edition of the Zoho Payroll help docs (United States English); undated standing help page, conditions: when configuring the Zoho Books integration)_ `CG-MCE-048#S30`
> “In the Map Accounts in Zoho Books section, select the debit and credit accounts for each payroll transaction category (Compensation, Tax, Benefit, and Deduction).” — [Zoho Corporation (Zoho Payroll US help) — Zoho Books Integration | Zoho Payroll](https://www.zoho.com/us/payroll/help/employer/integrations/zoho-books/), US-EN (United States English) edition of the Zoho Payroll help docs; undated standing help page, confirmed live September 2026; Section “Configure the Integration”, step 4 of the numbered procedure “To configure the integration:”. Verified 2026-09-09.
## What your payroll service reports for a completed run
- The payroll summary report gives the total payroll wages, taxes, deductions, and contributions. _(jurisdiction: United States, entity_scope: Businesses running payroll in QuickBooks, platform: QuickBooks (payroll summary report), platform_edition: US (en-US) edition, updated 8/5/2026)_ `CG-MCE-048#S31`
> “The payroll summary report gives you the total payroll wages, taxes, deductions, and contributions.” — [Intuit Inc. — Create a payroll summary report](https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll-reports/create-payroll-summary-report/L5VdgcgrR_US_en_US), 2026-08-05; Section "Create a payroll summary report", first sentence. Verified 2026-09-09.
- A payroll summary by employee is the report to run where payroll wages, taxes, deductions, and contributions are needed totalled by employee. _(jurisdiction: United States, entity_scope: Businesses running payroll in QuickBooks, platform: QuickBooks (payroll summary by employee), platform_edition: US (en-US) edition, updated 8/5/2026, conditions: Where the user needs the amounts totalled by employee)_ `CG-MCE-048#S32`
> “Run a payroll summary by employee if you need to view the payroll wages, taxes, deductions, and contributions totaled by employees.” — [Intuit Inc. — Create a payroll summary report](https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll-reports/create-payroll-summary-report/L5VdgcgrR_US_en_US), 2026-08-05; Section "Create a payroll summary report by employee", first sentence. Verified 2026-09-09.
- The information used to build the journal entry comes from the payroll report. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S33`
> “Use the info from your payroll report to create the journal entry.” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online, TEXT.txt line 65. Verified 2026-09-09.
- When QuickBooks withdraws tax from the employer's bank account, the bank asset account decreases and the tax holding asset account increases, with no impact on the tax liability accounts at that time. _(jurisdiction: United States, entity_scope: employers whose payroll taxes are withdrawn by QuickBooks and held in a tax holding account, platform: QuickBooks, platform_edition: QuickBooks Support help article (en-US), updated 8/5/2026, conditions: QuickBooks makes the tax withdrawal from the employer's bank account)_ `CG-MCE-048#S34`
> “When we make a tax withdrawal from your bank account, your bank asset account decreases and the tax holding asset account increases. There’s no impact on your tax liability accounts at this time.” — [Intuit Inc. — Understand payroll tax accounting in QuickBooks](https://quickbooks.intuit.com/learn-support/en-us/help-article/tax-refund/understand-payroll-tax-accounting-quickbooks/L5chpDozE_US_en_US), 2026-08-05; Section "How do tax withdrawals and payments work?". Verified 2026-09-09.
- The journal transaction Wave creates on approval records the total cost of the approved payroll run, recorded both as payroll expense and as an amount owing. _(jurisdiction: Wave Payroll as documented in Wave's en-us Help Center article; the pinned text names no country, tax authority or tax regime, so the document reaches only the Wave product in the market that this en-us Help Center article serves., entity_scope: Businesses that run and approve payroll in Wave, platform: Wave (Wave Payroll with Wave accounting))_ `CG-MCE-048#S35`
> “This journal transaction records the total cost of the approved payroll run, both as payroll expense and as an amount owing.” — [Wave Financial Inc. (Wave Help Center) — Payroll bookkeeping in Wave](https://support.waveapps.com/hc/en-us/articles/360046489492-Payroll-bookkeeping-in-Wave), no version or edition stated in the pinned text; packet records edition_or_date as not confirmable (host returns HTTP 403 to this harness); pinned snapshot sha256 4987cbb5d6e186f807e2a0bbdcaeb4eeb525dbb2c35fe8196cf5f1bb5e562de9; Section "Understand approved payroll bookkeeping" — opening paragraph, second sentence. Verified 2026-09-09.
_Not established from an authoritative source._
## The cash side: making the entry match what actually hits the bank
- See above: The cash side of the entry is the checking account the employees are being paid from, and net wages are entered on it as credits with each individual paycheck on a separate line rather than combined. ([CG-MCE-048#S26](#s-CG-MCE-048-S26))
- See above: When QuickBooks withdraws tax from the employer's bank account, the bank asset account decreases and the tax holding asset account increases, with no impact on the tax liability accounts at that time. ([CG-MCE-048#S34](#s-CG-MCE-048-S34))
- Later, when QuickBooks pays the tax agency, the tax holding asset account decreases and the tax liability account decreases. _(jurisdiction: United States, entity_scope: employers whose payroll taxes are remitted to the agency by QuickBooks from the tax holding account, platform: QuickBooks, platform_edition: QuickBooks Support help article (en-US), updated 8/5/2026, conditions: QuickBooks pays the tax agency after the withdrawal)_ `CG-MCE-048#S37`
> “Later, when we pay the tax agency, the tax holding asset account decreases and the tax liability account decreases.” — [Intuit Inc. — Understand payroll tax accounting in QuickBooks](https://quickbooks.intuit.com/learn-support/en-us/help-article/tax-refund/understand-payroll-tax-accounting-quickbooks/L5chpDozE_US_en_US), 2026-08-05; Section "How do tax withdrawals and payments work?". Verified 2026-09-09.
- Where the IRS or another agency debits the employer's bank account directly — the article gives Automated Taxes being off as one such case, not the only one — the bank asset account and the payroll tax liability account both decrease. _(jurisdiction: United States, entity_scope: employers whose bank account is debited directly by the IRS or another tax agency, platform: QuickBooks, platform_edition: QuickBooks Support help article (en-US), updated 8/5/2026, conditions: the IRS or another agency debits the bank account directly; example given: Automated Taxes is off)_ `CG-MCE-048#S38`
> “If the IRS or another agency debits your bank account directly—such as when Automated Taxes is off—your bank asset account and payroll tax liability account both decrease.” — [Intuit Inc. — Understand payroll tax accounting in QuickBooks](https://quickbooks.intuit.com/learn-support/en-us/help-article/tax-refund/understand-payroll-tax-accounting-quickbooks/L5chpDozE_US_en_US), 2026-08-05; Section "What if I pay the tax agency directly?". Verified 2026-09-09.
- Users of QuickBooks Desktop who export standalone payroll data may not yet have a Tax Holding account; in that case tax withdrawals decrease the bank account and the liability accounts. _(jurisdiction: United States, entity_scope: QuickBooks Desktop users exporting standalone payroll data who have no Tax Holding account, platform: QuickBooks Desktop (standalone payroll export), platform_edition: QuickBooks Support help article (en-US), updated 8/5/2026, conditions: QuickBooks Desktop with exported standalone payroll data; no Tax Holding account yet)_ `CG-MCE-048#S39`
> “If you use QuickBooks Desktop and export standalone payroll data, you may not have a Tax Holding account yet. In this case, tax withdrawals decrease your bank account and liability accounts.” — [Intuit Inc. — Understand payroll tax accounting in QuickBooks](https://quickbooks.intuit.com/learn-support/en-us/help-article/tax-refund/understand-payroll-tax-accounting-quickbooks/L5chpDozE_US_en_US), 2026-08-05; Section "How do I manage taxes without a tax holding account?". Verified 2026-09-09.
## The payroll service's own fee
- The article defines payroll costs as all costs an employer incurs to compensate its employees, and introduces an open list of the costs it says are included. _(jurisdiction: United States (US-oriented professional reference; the document names FICA and government unemployment insurance programs, and the publisher's CPE material is organised by US state; no jurisdiction is stated for the general definition itself), entity_scope: Employers generally; no entity type, size or industry limit stated, conditions: Definitional statement in a professional reference article, not a recognition or measurement requirement; The list that follows is introduced with "include" and is not stated to be exhaustive)_ `CG-MCE-048#S40`
> “Payroll costs consist of all costs incurred by an employer to compensate its employees . These costs include the following:” — [AccountingTools, Inc. (Steven Bragg) — What is included in payroll costs?](https://www.accountingtools.com/articles/payroll-costs), 2026-01-19; Article body, opening paragraph under the heading "What is included in payroll costs?" (dated January 19, 2026). Verified 2026-09-09.
- The article gives employee compensation as one component of payroll costs and says it includes wages, salaries, paid leave, piece rate pay, commissions and bonuses; the list is introduced with "include" and is not stated to be complete. _(jurisdiction: United States (US-oriented professional reference; the document names FICA and government unemployment insurance programs, and the publisher's CPE material is organised by US state; no jurisdiction is stated for the general definition itself), entity_scope: Employers generally; applies to amounts paid to employees, conditions: Open list introduced by "include"; Describes what employee compensation comprises, not how it is recognised or measured)_ `CG-MCE-048#S41`
> “Employee compensation . This include wages, salaries, paid leave, piece rate pay, commissions, and bonuses.” — [AccountingTools, Inc. (Steven Bragg) — What is included in payroll costs?](https://www.accountingtools.com/articles/payroll-costs), 2026-01-19; Article body, first bulleted item ("Employee compensation") in the list of costs included in payroll costs. Verified 2026-09-09.
- The article gives the employer-paid portion of payroll taxes as a second component of payroll costs, and says that employer-paid portion encompasses FICA taxes and government unemployment insurance programs. _(jurisdiction: United States (the taxes named are FICA and government unemployment insurance programs), entity_scope: Employers subject to the named US employer payroll taxes, conditions: Only the employer-paid portion is described as a payroll cost; Descriptive of the US taxes named; no tax rates, thresholds or filing requirements stated)_ `CG-MCE-048#S42`
> “The employer-paid portion of all payroll taxes . The employer-paid portion of these taxes encompasses FICA taxes and government unemployment insurance programs.” — [AccountingTools, Inc. (Steven Bragg) — What is included in payroll costs?](https://www.accountingtools.com/articles/payroll-costs), 2026-01-19; Article body, second bulleted item ("The employer-paid portion of all payroll taxes") in the list of costs included in payroll costs. Verified 2026-09-09.
_Not established from an authoritative source._
## Where the cost of running payroll belongs
_Not established from an authoritative source._
## One summary entry per run, or per-employee detail?
- Where multiple employees were paid for a pay period, the paycheck totals of all of them can be combined into one journal entry, or separate journal entries can be created for each employee if the details need to be broken out - both are permitted options. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40, conditions: multiple employees paid for the same pay period)_ `CG-MCE-048#S44`
> “If you paid multiple employees for the pay period, you can combine all of their paycheck totals into one journal entry. You can also create separate journal entries for each employee if you need to break out the details.” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online, TEXT.txt line 65. Verified 2026-09-09.
- Manually entering payroll paychecks into QuickBooks Online tracks payment totals, but it does not create the data needed for employees' W-2s; year-end forms must be obtained by working directly with the payroll service. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40, conditions: payroll paychecks entered manually rather than imported)_ `CG-MCE-048#S45`
> “Important: Manually entering payroll paychecks into QuickBooks Online tracks your payment totals. However, it doesn't create the data you'll need for your employee's W-2s. You'll need to work directly with your payroll service to get your year-end forms.” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; 'Important' callout, before Step 1, TEXT.txt line 46. Verified 2026-09-09.
- Some (not all) payroll services let paycheck data be imported directly into QuickBooks; where a service lacks that feature, the article's manual journal-entry method is offered as the way to track the payments, keeping payroll and account data in one place. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40, conditions: applies to services that offer direct import; manual entry is the alternative where they do not)_ `CG-MCE-048#S46`
> “Some payroll services let you import paycheck data directly into QuickBooks. If your service doesn't have this feature, we’ll show you how to manually track these payments as journal entries. This keeps your payroll and account data all in one place.” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Introduction (unheaded lead paragraph), TEXT.txt line 45. Verified 2026-09-09.
- For the employer payroll tax line, the taxes listed - Social Security Employer, FUTA Employer, Medicare Employer, State Job training taxes and State unemployment insurance - can be combined into one debit or added as separate debits per tax item. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S47`
> “Note: You can combine the following taxes into one debit, or add each tax item as separate debits: Social Security Employer, FUTA Employer, Medicare Employer, State Job training taxes and State unemployment insurance.” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online - 'Add employer payroll taxes', Note, TEXT.txt line 72. Verified 2026-09-09.
- In QuickBooks Desktop Payroll, the Payroll Summary report is broken out by employee by selecting Employee in the Show Columns dropdown. _(jurisdiction: United States, entity_scope: Businesses running payroll in QuickBooks, platform: QuickBooks Desktop Payroll, platform_edition: US (en-US) edition, updated 8/5/2026)_ `CG-MCE-048#S48`
> “In the Show Columns dropdown, select Employee .” — [Intuit Inc. — Create a payroll summary report](https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll-reports/create-payroll-summary-report/L5VdgcgrR_US_en_US), 2026-08-05; Section "Create a payroll summary report by employee" > subheading "QuickBooks Desktop Payroll", step 4. Verified 2026-09-09.
- As an example of that configurability, Zoho says the user can choose to track all tax deductions under a single account, or to use different accounts for each deduction type — i.e. the level of account-level detail for tax deductions is a user choice. _(jurisdiction: United States, entity_scope: businesses/organizations using the US edition of Zoho Payroll together with Zoho Books, platform: Zoho Payroll (integration with Zoho Books), platform_edition: US-EN edition of the Zoho Payroll help docs (United States English); undated standing help page)_ `CG-MCE-048#S49`
> “For instance, you can choose to track all tax deductions under a single account or use different accounts for each deduction type.” — [Zoho Corporation (Zoho Payroll US help) — Zoho Books Integration | Zoho Payroll](https://www.zoho.com/us/payroll/help/employer/integrations/zoho-books/), US-EN (United States English) edition of the Zoho Payroll help docs; undated standing help page, confirmed live September 2026; Section “Configure the Integration”, second sentence of the opening paragraph. Verified 2026-09-09.
_Partly established. Established: the criteria for choosing (S44, S46). Missing: comparison of recording one summary entry per run with importing per-employee detail; what each choice makes possible or impossible later._
_Required authority: official platform documentation. Highest achieved: official platform documentation._
## Which period the entry belongs in
- Under accrual accounting and the matching principle the date used to record the hourly payroll is the last day of the work period. _(jurisdiction: United States, entity_scope: employers with employees, accounting_basis: accrual basis of accounting (financial statement reporting), conditions: stated for the illustrated hourly payroll)_ `CG-MCE-048#S50`
> “In accordance with accrual accounting and the matching principle, the date used to record the hourly payroll is the last day of the work period.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Examples of Payroll Journal Entries For Wages", narrative introducing Hourly Payroll Entry #1 (workweek of December 18–24). Verified 2026-09-09.
- Amounts earned by employees during the current accounting period should be reported as expenses on that period’s income statement, even if some amounts will be paid in a later period or were paid in an earlier one. _(jurisdiction: United States, entity_scope: retailer, in the example given, accounting_basis: accrual basis of accounting (financial statement reporting))_ `CG-MCE-048#S51`
> “The amounts that were earned by the employees (and therefore incurred by the retailer) during the current accounting period should be reported as expenses on the retailer’s current period’s income statement (even if some of the amounts will be paid in a later accounting period or had been paid in an earlier accounting period).” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Introduction", subsection "Accrual Basis of Accounting and Matching Principle", first bullet on reporting employee compensation. Verified 2026-09-09.
- The date a company pays wages or fringe benefits is not necessarily the date it reports the expense on its financial statements. _(jurisdiction: United States, entity_scope: employers with employees, accounting_basis: accrual basis of accounting (financial statement reporting))_ `CG-MCE-048#S52`
> “As the above examples show, the date on which a company pays wages or fringe benefits is not necessarily the date on which the company reports the expense on its financial statements.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Introduction", subsection "Accrual Basis of Accounting and Matching Principle", closing paragraph. Verified 2026-09-09.
- Where hourly work periods are weekly or biweekly but the financial statements cover calendar months, the company will need an accrual-type adjusting entry at the end of the month. _(jurisdiction: United States, entity_scope: employers of hourly-paid employees, accounting_basis: accrual basis of accounting (financial statement reporting), conditions: work periods weekly or biweekly and financial statements covering calendar months)_ `CG-MCE-048#S53`
> “When the hourly-paid employees have work periods that are weekly or biweekly, but the company’s financial statements cover calendar months, the company will need to prepare an accrual-type adjusting entry at the end of the month.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Salaries and Wages", subsection "Wages". Verified 2026-09-09.
- The Journal date of the entry is the paycheck date. _(jurisdiction: United States (US en-US edition of the article; references US federal forms 941/944/940 and state SUI/ETT and PIT/SDI), entity_scope: QuickBooks Online users who pay employees through a payroll service outside QuickBooks (third-party paychecks), platform: QuickBooks Online, platform_edition: US (en-US) help article, updated 8/3/2026 05:40)_ `CG-MCE-048#S54`
> “Under the Journal date, enter the paycheck date.” — [Intuit Inc. — Manually enter payroll paychecks in QuickBooks Online](https://quickbooks.intuit.com/learn-support/en-us/help-article/write-checks/manually-enter-payroll-paychecks-quickbooks-online/L8Ibk0vix_US_en_US), 2026-08-03; Step 2: Enter the payroll paychecks into QuickBooks Online, TEXT.txt line 63. Verified 2026-09-09.
- The date shown on an approved payroll journal entry in Wave represents the last day of the approved payroll period. _(jurisdiction: Wave Payroll as documented in Wave's en-us Help Center article; the pinned text names no country, tax authority or tax regime, so the document reaches only the Wave product in the market that this en-us Help Center article serves., entity_scope: Businesses that run and approve payroll in Wave, platform: Wave (Wave Payroll with Wave accounting))_ `CG-MCE-048#S55`
> “Date : The date represents the last day of the approved payroll period.” — [Wave Financial Inc. (Wave Help Center) — Payroll bookkeeping in Wave](https://support.waveapps.com/hc/en-us/articles/360046489492-Payroll-bookkeeping-in-Wave), no version or edition stated in the pinned text; packet records edition_or_date as not confirmable (host returns HTTP 403 to this harness); pinned snapshot sha256 4987cbb5d6e186f807e2a0bbdcaeb4eeb525dbb2c35fe8196cf5f1bb5e562de9; Section "Understand approved payroll bookkeeping" — list "In an approved payroll journal entry, you can find the:", item "Date". Verified 2026-09-09.
- The dates in the payroll summary report are by paycheck date only, not by pay period date. _(jurisdiction: United States, entity_scope: Businesses running payroll in QuickBooks, platform: QuickBooks (payroll summary report), platform_edition: US (en-US) edition, updated 8/5/2026)_ `CG-MCE-048#S56`
> “Note that the dates in this report are by paycheck dates only, not pay period dates.” — [Intuit Inc. — Create a payroll summary report](https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll-reports/create-payroll-summary-report/L5VdgcgrR_US_en_US), 2026-08-05; Section "Create a payroll summary report", note preceding the product-specific steps. Verified 2026-09-09.
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation._
## The dating convention for an ordinary run
- See above: Under accrual accounting and the matching principle the date used to record the hourly payroll is the last day of the work period. ([CG-MCE-048#S50](#s-CG-MCE-048-S50))
- See above: Amounts earned by employees during the current accounting period should be reported as expenses on that period’s income statement, even if some amounts will be paid in a later period or were paid in an earlier one. ([CG-MCE-048#S51](#s-CG-MCE-048-S51))
- See above: The date a company pays wages or fringe benefits is not necessarily the date it reports the expense on its financial statements. ([CG-MCE-048#S52](#s-CG-MCE-048-S52))
- See above: Where hourly work periods are weekly or biweekly but the financial statements cover calendar months, the company will need an accrual-type adjusting entry at the end of the month. ([CG-MCE-048#S53](#s-CG-MCE-048-S53))
- See above: The Journal date of the entry is the paycheck date. ([CG-MCE-048#S54](#s-CG-MCE-048-S54))
- See above: The date shown on an approved payroll journal entry in Wave represents the last day of the approved payroll period. ([CG-MCE-048#S55](#s-CG-MCE-048-S55))
- See above: The dates in the payroll summary report are by paycheck date only, not by pay period date. ([CG-MCE-048#S56](#s-CG-MCE-048-S56))
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation._
## Checking the entry before you post it
- See above: The same entry also carries credits to a number of accounts: accounts detailing the liability for payroll taxes not yet paid, and the amount of cash already paid to employees as net pay. ([CG-MCE-048#S02](#s-CG-MCE-048-S02))
- See above: The cash side of the entry is the checking account the employees are being paid from, and net wages are entered on it as credits with each individual paycheck on a separate line rather than combined. ([CG-MCE-048#S26](#s-CG-MCE-048-S26))
- When the withheld taxes and the company's portion of payroll taxes are later paid to the IRS, a subsequent entry reduces the cash balance and eliminates the balances in the related liability accounts. _(jurisdiction: United States (article is written to the US tax regime — refers to the IRS and to 401(k) plans), entity_scope: Employers that run a payroll for employees, conditions: payment is made to the IRS)_ `CG-MCE-048#S57`
> “When you later pay the withheld taxes and company portion of payroll taxes to the IRS, you then use the following entry to reduce the balance in the cash account, and eliminate the balances in the liability accounts:” — [AccountingTools, Inc. (Steven Bragg) — Payroll journal entries](https://www.accountingtools.com/articles/payroll-entries), 2026-03-04; Section "Primary Payroll Journal Entry", final paragraph (introducing the remittance entry). Verified 2026-09-09.
- Federal income tax withheld from employees is reported on the employer’s balance sheet as a current liability, and the liability is reduced when the employer remits the amounts to the federal government. _(jurisdiction: United States, entity_scope: employers with employees, accounting_basis: accrual basis of accounting (financial statement reporting))_ `CG-MCE-048#S58`
> “Amounts withheld from employees for federal income taxes are reported on the employer’s balance sheet as a current liability. When the employer remits the amounts to the federal government, the current liability is reduced.” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Payroll Withholdings: Taxes & Benefits Paid By Employees", item 3 "Federal income tax". Verified 2026-09-09.
- From the company’s side net pay is the cash amount paid directly to employees on payday, which may take the form of a check, a direct deposit or another form. _(jurisdiction: United States, entity_scope: employers with employees)_ `CG-MCE-048#S59`
> “From the company side of the transaction, it is the cash amount that the company will pay directly to the employees on payday. (The cash amount may be in the form of a check, a direct deposit, or other.)” — [AccountingCoach, LLC (Harold Averkamp, CPA, MBA) — Payroll Accounting: In-Depth Explanation with Examples](https://www.accountingcoach.com/payroll-accounting/explanation), 2026 (undated page; content states 2026 Social Security wage base of $184,500 and 'Copyright © 2026 AccountingCoach, LLC'; snapshot retrieved 2026-09-09); Section "Net Pay". Verified 2026-09-09.
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation._
## Splitting wage cost across jobs, departments or locations
- In QuickBooks Online Payroll Premium and Elite, allocating payroll expenses to specific classes (given as examples: departments or locations) and projects (given as examples: jobs or customers) allows for detailed cost tracking; the examples are illustrative, not an exhaustive list of what classes and projects can represent. _(jurisdiction: United States (en-US QuickBooks site; country selector set to United States), entity_scope: Businesses subscribed to QuickBooks Online Payroll Premium or Elite, platform: QuickBooks Online Payroll, platform_edition: Premium and Elite, conditions: Article last updated 8/4/2026)_ `CG-MCE-048#S60`
> “Allocating payroll expenses to specific classes (such as departments or locations) and projects (such as jobs or customers) allows for detailed cost tracking in QuickBooks Online Payroll Premium and Elite.” — [Intuit Inc. — Track payroll expenses by classes and projects in QuickBooks Online Payroll](https://quickbooks.intuit.com/learn-support/en-us/help-article/job-costing/track-payroll-expenses-classes-projects-quickbooks/L7Z7rgbiy_US_en_US), 2026-08-04; Article intro, under title “Track payroll expenses by classes and projects in QuickBooks Online Payroll” (TEXT.txt line 43). Verified 2026-09-09.
- In the payroll run, the class and project are selected for each employee and for each pay type used, so allocation is made per employee per pay type at entry time. _(jurisdiction: United States (en-US QuickBooks site; country selector set to United States), entity_scope: QuickBooks Online Payroll Premium or Elite users running payroll, platform: QuickBooks Online Payroll, platform_edition: Premium and Elite, conditions: Performed inside the Edit classes and projects screen during the payroll run)_ `CG-MCE-048#S61`
> “Select the class and project for each employee and each pay type used.” — [Intuit Inc. — Track payroll expenses by classes and projects in QuickBooks Online Payroll](https://quickbooks.intuit.com/learn-support/en-us/help-article/job-costing/track-payroll-expenses-classes-projects-quickbooks/L7Z7rgbiy_US_en_US), 2026-08-04; “Assign classes and projects on your employees’ paychecks”, step after “Select Edit classes and projects” (TEXT.txt line 52). Verified 2026-09-09.
- Turning on or updating class tracking applies only to future transactions and does not retroactively affect past records. _(jurisdiction: United States (en-US QuickBooks site; country selector set to United States), entity_scope: QuickBooks Online users turning on or updating class tracking, platform: QuickBooks Online / QuickBooks Online Payroll)_ `CG-MCE-048#S62`
> “Note: Turning on or updating class tracking applies only to future transactions and will not retroactively affect past records.” — [Intuit Inc. — Track payroll expenses by classes and projects in QuickBooks Online Payroll](https://quickbooks.intuit.com/learn-support/en-us/help-article/job-costing/track-payroll-expenses-classes-projects-quickbooks/L7Z7rgbiy_US_en_US), 2026-08-04; “Assign classes and projects on your employees’ paychecks”, note under Step 1 (TEXT.txt line 47). Verified 2026-09-09.
- The two reports named for viewing payroll expense by class or project are Profit and Loss by Class and Profit and Loss by Customer, found under Reports → Standard reports using the Find report by name dropdown. _(jurisdiction: United States (en-US QuickBooks site; country selector set to United States), entity_scope: QuickBooks Online users running standard reports, platform: QuickBooks Online, conditions: Reports are located under Reports → Standard reports)_ `CG-MCE-048#S63`
> “From Find report by name ▼ dropdown, enter Profit and Loss by Class or Profit and Loss by Customer .” — [Intuit Inc. — Track payroll expenses by classes and projects in QuickBooks Online Payroll](https://quickbooks.intuit.com/learn-support/en-us/help-article/job-costing/track-payroll-expenses-classes-projects-quickbooks/L7Z7rgbiy_US_en_US), 2026-08-04; “Run your Profit and Loss reports”, step 2 (TEXT.txt line 61). Verified 2026-09-09.
_Partly established. Established: allocation of wage cost across jobs, departments or locations where the books carry that dimension (S60). Missing: what the run report must provide for the allocation to be made at entry time._
_Required authority: official platform documentation. Highest achieved: official platform documentation._
## Not yet fully established from an authoritative source
- Establish the components of a payroll run and which are employer expense as against amounts withheld from employees and owed onward to a third party, and establish that the employer's own payroll taxes are recorded both as an expense of the employer and as a separate obligation carried until it is remitted, distinct from the amounts withheld from employees. _(partly established; below the required authority class)_
- Establish the treatment of employee-elected deductions that are withheld and remitted to a third party rather than to a tax authority. _(established; below the required authority class)_
- Establish what mainstream payroll services report for a completed run, which report carries each component, at what granularity detail is available, and how the service draws funds. _(not established)_
- Establish the treatment and classification of a payroll service's own fee relative to wage cost. _(not established)_
- Establish the convention determining the period in which an ordinary payroll run is recorded, and how it relates to the date the work was performed. _(established; below the required authority class)_
- Establish the components of a completed payroll run and classify each as employer expense, an amount withheld from employees and owed onward, or a cash movement. _(partly established; below the required authority class)_
- Establish why gross wages rather than net pay is the expense, and demonstrate the arithmetic identity that links gross, withholdings, deductions and net pay so the entry can be checked. _(partly established; below the required authority class)_
- Determine which payroll taxes the employer bears in addition to what is withheld from employees, and show that they create both an expense and a separate obligation. _(established; below the required authority class)_
- Determine the treatment of employee-elected deductions remitted to a third party, and distinguish them from amounts withheld for a tax authority. _(established; below the required authority class)_
- Determine the treatment of the payroll service's own fee and show that it is kept separate from wage cost. _(not established)_
- Compare recording one summary entry per run with importing per-employee detail, and give the criteria for choosing, including what each choice makes possible or impossible later. _(partly established; below the required authority class)_
- Establish which period the ordinary run entry belongs in, stated as the convention that applies, and flag that a pay period spanning a closing date raises a separate decision handled elsewhere. _(established; below the required authority class)_
- Specify how the completed entry is verified: the obligations created must correspond to amounts that will later be remitted, and net pay must equal the cash that left the account. _(established; below the required authority class)_
- Address allocation of wage cost across jobs, departments or locations where the books carry that dimension, and what the run report must provide for the allocation to be made at entry time. _(partly established; below the required authority class)_
## Related
- [Why is the balance in my payroll liability accounts wrong, and how do I reconcile payroll liabilities to what I actually filed and paid?](https://uppago.com/resources/why-is-the-balance-in-my-payroll-liability-accounts-wrong-and-how-do-i-reconcile)
- [How do I accrue wages at month end when the pay period straddles the closing date?](https://uppago.com/resources/how-do-i-accrue-wages-at-month-end-when-the-pay-period-straddles-the-closing)
- [How do I reconcile my health insurance or retirement plan invoice to what I actually deducted from employees' pay?](https://uppago.com/resources/how-do-i-reconcile-my-health-insurance-or-retirement-plan-invoice-to-what-i)
- [How do I record tips — cash tips, credit-card tips and tips shared through a pool — and what tip records do I have to keep?](https://uppago.com/resources/how-do-i-record-tips-cash-tips-credit-card-tips-and-tips-shared-through-a-pool)
_Reference date 2026-09-07. Statements are quoted verbatim from their sources; scope and verification dates are shown on each._