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October 3, 2023
Question

How to categorize bank records for payroll

  • October 3, 2023
  • 0 replies
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Hello, I have a LLC where I am the sole owner/employee. I pay myself weekly. When I reconcile these bank transactions I currently categorize them as Payroll Expenses: Wages but I am not sure that is correct. I also make a separate transaction for IRA contributions which I categorize as Personal expenses:Owner retirement plans. Again not sure that is correct as both of these are children or synonyms of Expense.

 

At the end of the year when doing taxes I am assuming that both payroll and IRA contributions will be lumped in with all the other business expenses and I don't think that is correct.

 

What should payroll bank transactions be categorized as?

 

Thanks!