JulieS
Expert Alumni

Business & farm

Your payroll tax expense entry should include the employer half of social security and Medicare tax as well as federal and state unemployment tax. 

 

Employee compensation is gross wages plus any tax deferred benefits, like 401(K) and health insurance. If you get the gross wage amount from the W-2 forms, it already includes the employee half of social security and Medicare tax as well as federal and state taxes withheld. 

 

 

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