Payroll expense year end entry

Payroll is reported as an expense when the check is written.  It is expensed and credited to cash and does not constitute an accrual.  It is merely a reconciling item on your bank account as an outstanding check at 12/31.

Thank you! 

For checks I received as business payments that didn’t clear yet, are those money in transit accounts with a reversal entry in January? Or do I just call it income and cash? I use waveapps for my bookkeeping and it wants me to do money in transit in order for the internal reconciliation from my imported bank statements to reconcile 

Yes, for income tax purposes, these are consider income and cash assuming that  these checks were paid in posted in December but didn't clear until January.