a****n
发帖数: 15 | 1 I have a question on the payroll tax accrual.
When I do the expenses accrual before the month close, I was told I don’t
need to do the payroll tax accrual.
For example, if we have payroll paid on 4/05/13 and the pay period is in the
March. I will accrual the payroll expenses in March but don’t need to do
the payroll tax accrual. Thus the payroll tax expenses will become the April
expenses.
I was told the reason is ” payroll Tax is technically due until we pay our
payroll. It is not related to the payroll period. It is related to the pay
date. “ But I still don’t think it is correct due to the matching
accounting principle.
Can anybody give me some advice on it? Thanks a lot for your time!! | k****4
发帖数: 144 | 2 Technically, it is not right. If it was right, that would mean company does
not need to accrual any corporate income tax during the year since the tax
payment will be due in next year. For reality, it the payroll tax number is
not big, it is ok. | C******8
发帖数: 223 | 3 1) matching....
2) accrual and reverse..
3) in house payroll or out sourcing payroll? | C******8
发帖数: 223 | 4 Corporate income tax is not payroll tax....
does
is
【在 k****4 的大作中提到】
: Technically, it is not right. If it was right, that would mean company does
: not need to accrual any corporate income tax during the year since the tax
: payment will be due in next year. For reality, it the payroll tax number is
: not big, it is ok.
| d*******5
发帖数: 32 | 5 I'm working in a small CPA firm. Even for our cash basis clients, we do
payroll taxes accrual in current month. I guess one of the reason: besides
employer payroll taxes,employee's pay are deducted for FICA and state
withholding in current month. It's better and easier to accrue employer
payroll taxes in current month to keep track of payroll taxes payable. | a****n
发帖数: 15 | 6 Thanks a lot for all of your responses!!
Per my understanding, the employee payroll tax payable is the liability
account and will affect the balance sheet. But the employer payroll tax
expenses account is the expense account and will affect the P&L report.
If a payroll paid in 4/5/13 and the payroll date is 3/26/13 to 4/5/13, the
total payroll tax expense is $10,000. should I accure 50% of the payroll tax
expenses to March? Which will be the $5,000 payroll tax expense in March
just for the pay period 3/26 to 3/31?
【在 d*******5 的大作中提到】
: I'm working in a small CPA firm. Even for our cash basis clients, we do
: payroll taxes accrual in current month. I guess one of the reason: besides
: employer payroll taxes,employee's pay are deducted for FICA and state
: withholding in current month. It's better and easier to accrue employer
: payroll taxes in current month to keep track of payroll taxes payable.
| P******i
发帖数: 22 | 7 Based on the matching principle, the employer tax expenses should be accrued
for the period in which the employees' services provided, which is March 26
to March 31 in your example. I think your point is absolutely correct.
However, in the real world, the accounting standards and principles are not
strictly applied all the times. Some other factors will be taken into the
consideration too. For instance, if your company issues the financial report
in a quarterly basis, and the employer tax expense need to be accrued is in
a relatively small amount which will not really change the financial
picture of the company and each department,many companies may choose make
the accrual in a quarterly basis.
tax
【在 a****n 的大作中提到】
: Thanks a lot for all of your responses!!
: Per my understanding, the employee payroll tax payable is the liability
: account and will affect the balance sheet. But the employer payroll tax
: expenses account is the expense account and will affect the P&L report.
: If a payroll paid in 4/5/13 and the payroll date is 3/26/13 to 4/5/13, the
: total payroll tax expense is $10,000. should I accure 50% of the payroll tax
: expenses to March? Which will be the $5,000 payroll tax expense in March
: just for the pay period 3/26 to 3/31?
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