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How to Record Employee Salary
Create the following accounts:
- Wages & Salary (Expenses)
- CPF (Expenses)
- CPF Payable (Liability) - Employer + Employee
To record, go to: Transactions > Journal
The entry will be:
- Credit - Bank account
- Debit - Wages & Salaries
- Debit - CPF
- Credit - CPF Payable
How to Record post-dated salary
Example of a Scenario:-
Salary expense incurred for December but only paid out on 7th January. As such, I will record salary payable as a journal entry in Dec 2020 but will subsequently record as a salary expense in Jan 2021. Please advise step by step guide.
Example:
Employee has a base salary of $5000,
Employer CPF will be: $850
Employee CPF will be: $1000
Total Employer + Employee CPF will be $1850
Create the following accounts:
- Wages & Salary (Expenses)
- CPF (Expenses)
- CPF Payable (Liability) - Employer + employee
- Net Salary(Liability) Amount payable in January
The entries will be:
Record the transaction in December: Go to > Transactions > Journal
Record the transaction in January (salary payable to the employee in January): Go to > Transactions > Withdrawals
Record the transaction in January (payable to CPF in January): Go to Transactions > Withdrawals
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