I am confused about how to handle Payroll Withholding Tax accruals and Payroll Tax Contributions by the employer. I am entering my opening balances and presumed this needed to be set up as a Purchase Tax Template for the feds and another for the state; but so far that isn’t working for me.
In my current accounting system the Payroll Module calculates the withholding taxes and credits them to the appropriate Accrued Tax Liability account. It also calculates, accrues, and expenses the Business Payroll taxes such as Unemployment Taxes.
I am particularly interested in hearing how this has been set up in ERPNext by other USA based companies.
Some guidance would be appreciated,