328 Employees Incentives / Bonuses Payable
Liabilities
Accrued
Synopsis
Account 328 is established to record the amount of Employee Incentive Pay or Bonuses payable or accrued.
Debits |
Credits |
|
|
Example 1
Record the monthly accrual of $2,500 for employee bonuses.
Journal: Payroll Journal
Entry: |
|
Debit |
Credit |
Account 097 |
Bonuses – Employees |
$2,500 |
|
Account 328 |
Employee’s Incentives/Bonuses Payable |
|
$2,500 |
Example 2
Record the payment of employee bonuses totaling $30,000 at year-end. The payroll taxes accrued are $9,900, and the retirement benefits accrued are $2,400. The monthly payroll tax expense is $2,295 and the monthly retirement benefit expense is $600.
Journal: Payroll
Entry: |
|
Debit |
Credit |
Account 328 |
Employee’s Incentives/Bonuses Payable |
$30,000 |
|
Account 025-09 |
Payroll Taxes – General & Administrative |
$2,295 |
|
Account 029-09 |
Retirement Benefits – General & Administrative |
$600 |
|
Account 202 |
Cash in Bank |
|
$20,505 |
Account 323 |
Payroll Taxes Payable |
|
$9,990 |
Account 330 |
Retirement Benefits Payable |
|
$2,400 |
Comments
A credit balance represents unpaid employees bonuses.