27 – Taxes – Payroll

Personnel Expenses

Synopsis

Account 27

Remarks:

Current applicable tax rates should be used in computing the employee and employer tax liability.

Individual employee earnings records should be currently maintained to facilitate the proper payroll deductions and permit accurate employer tax liability accrual.

Payroll taxes that should be charged to this account include FICA taxes, unemployment taxes, and state and local employment taxes, if any.

Expenses in this account should be charged to the appropriate operating department.  For employees providing services to more than one department, expenses should be prorated on an equitable basis.