Chart of Accounts & Payroll garnishments
what chart account should Payroll Garnishments go under
Hi Fatima, great question!
Payroll garnishments are not an employer expense but a deduction that the employer makes on behalf of the organization that has mandated the garnishment (i.e. Child support). With that said, you when you deduct the garnished amount from the employee’s paycheck, it should be coded to a liability account called Garnishments.When you remit the payment to the organization who should receive it, you will clear the liability account when you process the payment.
All the Best-
Crystalynn Shelton, CPA
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.