Needing a liability and expense for superannuation
in payroll do you have a liability account and expense account for super
EG. Credit a Liability account and Debit a Expense account. Thank-you.
Hi hbr2
Certain types of superannuation categories would require both a liability and an expense account added to them. This will be due to the way the superannuation works within that business.
For example, the Superannuation Guarantee works by the employer paying 9.5/10% of superannuation to the employee's super fund. As such, there is an expense for the business to account for offering that superannuation. They are also obligated to pass those values across to the super fund so there is a liability to the company to do that.
From an AccountRight point of view, users can review what accounts are selected for a superannuation category through Payroll>>Payroll Categories>>Superannuation>>Choosing the desired category>> Linked Expense Account and Linked Payable Account. When processing the pays for these types of categories you would likely have a debit to the expense account (an increase) and a credit to the liability (an increase). When paying out that superannuation you would have a debit to the liability (a decrease).
