Accounting › Section K · Current liabilities › Topic K.4
Recording payroll
Every payday turns one number, what employees earned, into a cluster of liabilities: taxes withheld, benefits owed, the employer's own payroll taxes and the net pay itself. Payroll is often a company's largest expense, and getting it right is a legal duty as well as an accounting one.
In this topic
- Where a paycheck goes
- From gross pay to net pay
- Income tax withholding
- FICA for 2026
- Voluntary and pre-tax deductions
- Worked example: the employee side
- The employer's own payroll taxes
- Worked example: the employer side
- Wage bases in action
- Paying what is owed
- Common mistakes to avoid
- Key takeaways
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