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Here's a list of the linked accounts that are used for payroll transactions, along with information about where the linked accounts are used:
Bank Account for Cash Payments
Used to track the amounts for employees you pay with cash. This account appears as a default entry for Cash employee payments in the Pay From Account window of the Process Payroll Assistant, but you can choose another bank account.
When you create a cash employee payment, this account (or the bank account you select instead) is credited by the amount of the transaction, and your linked Default Wages Expense Account (or another Wages Expense account you may have assigned to the employee) is debited. In effect, the bank account is decreased and the wages expense account is increased. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)
The account you select here must be an account that is a bank or credit card account type. (To add an account)
Bank Account for Check Payments
Used to track the amounts for employees you pay by check. This account appears as a default entry for Check employee payments in the Pay From Account window of the Process Payroll Assistant, but you can choose another bank account.
When you create a check employee payment, this account (or the bank account you select instead) is credited by the amount of the transaction, and your linked Default Wages Expense Account (or another Wages Expense account you may have assigned to the employee) is debited. In effect, the bank account is decreased and the wages expense account is increased. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)
The account you select here must be an account that is a bank or credit card account type. (To add an account)
Bank Account for Electronic Payments
Used to track the amounts for employees you pay electronically. This account appears as a default entry for Electronic employee payments in the Pay From Account window of the Process Payroll Assistant, but you can choose another bank account.
When you create an electronic employee payment, this account (or the bank account you select instead) is credited by the amount of the transaction, and your linked Default Wages Expense Account (or another Wages Expense account you may have assigned to the employee) is debited. In effect, the bank account is decreased and the wages expense account is increased. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)
Note: What is the linked Bank Account for Electronic Payments?
The account you select here must be an account that is a bank or credit card account type. (To add an account)
Default Employer Expense Account
Used to track the expenses you pay on behalf of your employees. The account you enter here will appear as a default entry for new employer expense records, but you can override the default account using the Employer Expense Information window if you like.
Whenever an employer expense that uses this linked account is included on an employee's paycheck, this account is debited and the linked Withholding Payable Account assigned to the employer expense is credited.
The account you select here must be an account that is a bank or credit card account type.
Default Wages Expense Account
Used to track the wages you pay to your employees. The account you enter here will appear as a default entry for new employee records, but you can override the default account for individual employees using the Employee Payroll Information window. You might use separate wage expense accounts for people in different departments, for example, or for employees in different locations.
Whenever a wage using this linked account is included on an employee's paycheck, this account is debited and the checking account selected for the paycheck is credited. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)
Default Withholding Payable Account
Used to track the liabilities your company incurs for employee deductions and employer expenses. The account you enter here will appear as a default entry for new deduction and expense records. You can override the default account for individual deductions using the Deduction Information window; you can also override the default account for expenses using the Employer Expense Information window.
Whenever a deduction or expense that uses this linked account is included on an employee's paycheck, this account is credited and the expense account assigned to the deduction or expense is debited.
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