Categorise a payroll payment

1. If you are using Myaccountant's Payroll solution to process payroll

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If you are using Myaccountant's payroll solution, after marking a pay run as finalised the net wages amount is recorded as a business expense, and the net wages amount is also recorded as accounts payable in the balance sheet as a liability.

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When the payroll payment is made to the employees, the net wages amount from your bank account is categroised to accounts payable as follows:

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Find the payroll payment in the bank transactions, then click on the briefcase icon.

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1. In transaction type, select Add to Business Payment.
2. In category, select Accounts Payable.
3. Type should auto-populate as Money out, if not, select Money out.
4. Then click on Save.

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2. If you are not using Myaccountant payroll solution to process payroll

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If you are not using Myaccountant's payroll solution to process payroll, you will need to categorise the payroll payment as a business expense.

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1. In transaction type, select Add to Business Expense.
2. In category, select Salary, Wages.
3. Then, click on Save.

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The payment will be recorded as a business expense.

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