How to categorize bank records for payroll
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!
