What payroll accounts do I need to setup in the Chart of Accounts, to enable automatic calculation of tax and superannuation?
This is a 6-step process:
Step 1: Set up a Liability (PAYG) account:
Step 2: Set up a Liability (Superannuation) account:
Step 3: Set up an Operating Expense account for salary / wages payments
Note: Difference between salary and wages:
Step 4: Set up an Operating Expense account for superannuation payments
Step 5: Set up an Other Expense account for PAYG withheld, linked to the PAYG liability account
Step 6: Set up an Other Expense account for superannuation withheld, linked to the superannuation liability account