Closing Employee Accounts
In This Chapter
• Employee expensing
• Expensing control
• Checking checks
• Payroll posting
Even though you don’t need to report employees’ earnings to government entities on a monthly basis, it’s still important to close the employee accounts at the end of each month.
If you are doing the payroll in-house, the proper entries are probably already in place. For companies that use a payroll service, the payroll total for the month is probably sitting in a temporary account waiting for the details to distribute the information to the proper expense accounts. This distribution is handled as part of the closing process at the end of the month.
Another key part of employee records is the individual employee ...