Employee Deductions

Code: 2133
👁 Views: 167

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Deduction amounts from employee salaries for various purposes

Common Journal Entries

Deduct absence from salary

Dr. Salaries Payable
Cr. Employee Deductions

Collect employee deductions

Dr. Employee Deductions
Cr. Other Income

Deduct late penalty from salary

Dr. Salaries Payable
Cr. Employee Deductions

Settle employee deductions

Dr. Employee Deductions
Cr. Bank Account

Deduct absence from salary

Dr. Salaries Payable
Cr. Employee Deductions

Collect employee deductions

Dr. Employee Deductions
Cr. Other Income

Deduct late penalty from salary

Dr. Salaries Payable
Cr. Employee Deductions

Settle employee deductions

Dr. Employee Deductions
Cr. Bank Account

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 19 Employee Benefits
US GAAP ASC 710 Compensation - General

❓ Frequently Asked Questions

Q: What are employee deductions?

A: Amounts deducted from employee salaries such as social insurance, taxes, employee advances, and absences.