Accounts Needed For Payroll Purposes
| ACCOUNT | DESCRIPTION | TAX-REL. | TYPE |
| [Payroll-FICA] | FICA taxes | No | Liability account |
| [Payroll-FWH] | Fed. Income taxes withheld | No | Liability account |
| [Payroll-MCARE] | Medicare taxes | No | Liability account |
| [Payroll-SWHOH] | Ohio income taxes withheld | No | Liability account |
Following is the register entry for the employee’s monthly paycheck from the FARM CHECKING account:
| Date | Num | Payee | Memo | Category | Amount |
| 1/31/XX | 111 | Bob Jones | --SPLIT-- | 1,478.10 | |
| **Split Screen Detail** | |||||
| Category | Amount | ||||
| 1. Payroll:Gross | 1800.00 | ||||
| 2. [Payroll-FWH] | -145.00 | ||||
| 3. [Payroll-SWHOH] | -39.20 | ||||
| 4. [Payroll-MCARE] | -26.10 | ||||
| 5. [Payroll-FICA] | -111.60 | ||||
| 6. Payroll:Comp FICA | 111.60 | ||||
| 7. [Payroll-FICA] | -111.60 | ||||
| 8. Payroll:Comp MCARE | 26.10 | ||||
| 9. [Payroll-MCARE] | -26.10 | ||||
In this paycheck, the first line of the split screen is the gross wages of $1800.00. Items 2-5 are deductions from the employee’s paycheck and are shown as negative entries. Items 6-9 are the employer’s contribution and expense for FICA and Medicare taxes. These entries do not affect the bank balance since the expenses (payroll:comp FICA and payroll:comp MCARE) are offset by the negative amounts being added to the payroll liability accounts ([Payroll-FICA] and [Payroll-MCARE]). After this paycheck has been written, the employer has a liability of $145 for federal income tax, $223.20 of FICA tax, $52.20 of Medicare taxes and $39.20 of Ohio income tax. The total owed to the IRS for employment taxes is $420.40.