Can someone provide a restaurant payroll with tips journal entry?
I'm hoping someone can help me with my restaurant payroll entry.
We use an outside payroll. I write a check to the payroll company for the impound amount using processing fee, employer taxes and the direct deposit amount into net payroll. I then write checks to the individual employees that get paper checks using net payroll. My journal entry is:
salaries & wages - debit
employee taxes - credit
net payroll (total amount) - credit
tips - debit
Tips get paid out each night but get reported on payroll. The sales slip credits tips so that liability account is always zero.
I am out of balance by my tips amount because it's not in net pay and cannot figure out where that credit belongs.