Understanding Payroll Journal Entry: Recording Employee Payments and Deductions

In the journal entry for a payroll, the amount debited to Salary Expense is the total of the Net Pay column of the payroll register.

True

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When processing a payroll, employee earnings and deductions are recorded in a payroll register. Once this register has been completed, the next step is to record the payment of the net wages to employees. The journal entry for this payment will include a debit to Salary Expense and credits to various liability accounts such as Payroll Tax Payable, Employee Income Tax Payable, and FICA Tax Payable.

The Salary Expense account is initially credited for the gross wages earned by employees, but it is then debited for the amount of net pay actually paid to employees. The difference between the gross pay and the net pay, which includes various withholdings and deductions, is credited to the appropriate liability accounts mentioned above.

Therefore, the total of the net pay column of the payroll register is debited to the Salary Expense account to reflect the actual amount of wages paid to employees during the period.

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