An explanation of how social security insurance is reflected in the system after posting the payroll and how to handle the related accounting entries.
Answer:
Upon posting the payroll, the social security insurance amount is reflected in the system as follows:
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Current Liability Account for Social Security Insurance:
The social security insurance amount borne by both the company and the employee is recorded. -
Expense Account for Social Security Insurance:
Only the company’s share of social security insurance is recorded in the expense account.
When paying social security insurance, an accounting entry is created that transfers from the social security insurance liability account to the bank or cash account based on the payment method used.
Important Notes:
- You can view the social security insurance accounts by navigating to Payroll, then Employees, then clicking on Social Security Insurance from the top options, and you will see the accounts linked to social security insurance.
- You can view the reflected entry by navigating to Reports, then Journal.
Keywords for inquiry:
- What are the entries reflected from social security insurance?
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Insurance entries in the system
