Now it’s the time to combine payroll and accounting together. We have talked various deduction items on the paycheck, now the question is how are these items and transactions recorded in the journal and how is that reported on Financial Statements? What are the typical journal entries to record wages? What are the typical journal entries to record payroll taxes? As far as journal entries are concerned, you will need to consider how wage expense, payroll tax expense, various deduction items and cash are related to each other. Detailed examples would be great
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