Bank Account for Cash Payments

Enter an account that will be used to track the money you've paid to employees. The account you select must be a bank or credit card account type. This account typically is an account named "Checking Account" or something similar.

This account is used to track the amounts for employees you pay with cash. This account appears as a default entry for Cash employee payments in the Pay From Account window of the Process Payroll Assistant, but you can choose another bank account.

When you create a cash employee payment, this account (or the bank account you select instead) is credited by the amount of the transaction, and your linked Default Wages Expense Account (or another Wages Expense account you may have assigned to the employee) is debited. In effect, the bank account is decreased and the wages expense account is increased. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)

The account you select here must be an account that is a bank or credit card account type. (To add an account)

Bank Account for Check Payments

Enter an account that will be used to track the money you've paid by check to employees. The account you select must be a bank or credit card account type. This account typically is an account named "Payroll Checking Account" or something similar.

This account is used to track the amounts for employees you pay by check. This account appears as a default entry for Check employee payments in the Pay From Account window of the Process Payroll Assistant, but you can choose another bank account.

When you create a check employee payment, this account (or the bank account you select instead) is credited by the amount of the transaction, and your linked Default Wages Expense Account (or another Wages Expense account you may have assigned to the employee) is debited. In effect, the bank account is decreased and the wages expense account is increased. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)

The account you select here must be an account that is a bank or credit card account type. (To add an account)

Bank Account for Electronic Payments

Enter an account that will be used to track the money you pay to employees electronically. The account you select must be a bank or credit card account type. This account typically is an account named "Electronic Clearing Account" or something similar.

When you change the account in this window, it is also changed in the Accounts & Banking Linked Accounts window.

This account is used to track the amounts for employees you pay electronically. This account appears as a default entry for Electronic employee payments in the Pay From Account window of the Process Payroll Assistant, but you can choose another bank account.

When you create an electronic employee payment, this account (or the bank account you select instead) is credited by the amount of the transaction, and your linked Default Wages Expense Account (or another Wages Expense account you may have assigned to the employee) is debited. In effect, the bank account is decreased and the wages expense account is increased. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)

Default Employer Expense Account

Enter an account that will be used to track the employer expenses that aren't deducted from employees' paychecks. This account will appear as a default entry in the Employer Expense Information window when you add or edit individual employer expenses; you can override that default entry, if you wish.

This account is used to track the expenses you pay on behalf of your employees. The account you enter here will appear as a default entry for new employer expense records, but you can override the default account using the Employer Expense Information window if you like.

Whenever an employer expense that uses this linked account is included on an employee's paycheck, this account is debited and the linked Withholding Payable Account assigned to the employer expense is credited.

The account you select here must be an account that is a bank or credit card account type.

Default Wages Expense Account

Enter an account that will be used to track your wage expenses. This account will appear as a default entry in the Payroll Details view - Wages for individual employees; you can override that default entry using the Employee Payroll Information window, if you wish.

This account is used to track the wages you pay to your employees. The account you enter here will appear as a default entry for new employee records, but you can override the default account for individual employees using the Employee Payroll Information window. You might use separate wage expense accounts for people in different departments, for example, or for employees in different locations.

Whenever a wage using this linked account is included on an employee's paycheck, this account is debited and the checking account selected for the paycheck is credited. (Depending upon the taxes and other payroll categories assigned to an employee, additional debit and credit entries will be made, as well.)

Default Withholding Payable Account

Enter an account that will be used to track the amounts withheld from employee paychecks. When you withhold money -- taxes or deductions -- from an employee's paycheck, the amounts you withhold are recorded in this account. This account will appear as a default entry in the following Payroll Category List windows: Deduction Information, Employer Expense Information and Tax Table Information windows; you can override those default entries, if you wish.

MYOB AccountEdge provides a single default withholding account. Many businesses prefer to separate taxes withheld by using different liability accounts for each tax. If you want to do this, first be sure you have separate liability accounts for this purpose in your accounts list. Then enter the account you want to use in the Linked Payable Account field of the Tax Table Information window for each tax for which you want to track amounts separately.

Whenever a deduction or expense that uses this linked account is included on an employee's paycheck, this account is credited and the expense account assigned to the deduction or expense is debited.

OK button

Click this button to accept the entries you've made and close the window.