Confused About Payroll Deductions and Payroll Liabilities?
Are you confused about payroll deductions and payroll liabilities? If so, don't feel alone! They can confuse a lot of people. Here is a question that was asked and discussed in a bookkeeping group that I belong to. Payroll Deduction Question: Employee has voluntary disability deducted from pay. This is not a liability for the employer to remit...how do I enter this? Expense sounds weird for this situation. Have you run into a similar situation? If so, here are some basic rules and procedures. Answer: Once an employee gives an employer authorization to deduct something from his paycheck (health insurance contribution, union dues, child support, etc.) it becomes the employer's liability (responsibility) to make sure that the money is deducted and sent on it's merry little way. If the employer…