Journalizing and Posting the Payroll
When employee salaries are calculated, certain amounts are withheld for taxes and voluntary deductions. After the payroll register is complete, the payroll entry is journalized and the amounts are posted to the general ledger.
Once the payroll is prepared, a check is written to transfer the total net pay amount from the regular business checking account to its payroll checking account. The check is deposited into the payroll account, and all payroll checks for the period are written from the payroll account.
After completing the above steps, the payment is recorded in the accounting records.