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<meta name="viewport" content="width=device-width, initial-scale=1.0" /><meta name="viewport" content="width=device-width, initial-scale=1" />
<title>2. Payroll Accounting &#8212; Canadian Payroll Administration HR documentation</title>
<link rel="stylesheet" type="text/css" href="_static/pygments.css?v=fa44fd50" />
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<script src="_static/documentation_options.js?v=e6081414"></script>
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<script src="_static/doctools.js?v=9bcbadda"></script>
<script src="_static/sphinx_highlight.js?v=dc90522c"></script>
<link rel="index" title="Index" href="genindex.html" />
<link rel="search" title="Search" href="search.html" />
<link rel="next" title="REVIEW QUESTIONS" href="review_questions.html" />
<link rel="next" title="3. REVIEW QUESTIONS" href="review_questions.html" />
<link rel="prev" title="1. INTRODUCTION" href="introduction.html" />
</head><body>
<div class="related" role="navigation" aria-label="related navigation">
<div class="related" role="navigation" aria-label="Related">
<h3>Navigation</h3>
<ul>
<li class="right" style="margin-right: 10px">
<a href="genindex.html" title="General Index"
accesskey="I">index</a></li>
<li class="right" >
<a href="review_questions.html" title="REVIEW QUESTIONS"
<a href="review_questions.html" title="3. REVIEW QUESTIONS"
accesskey="N">next</a> |</li>
<li class="right" >
<a href="introduction.html" title="1. INTRODUCTION"
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<h1><span class="section-number">2. </span>Payroll Accounting<a class="headerlink" href="#payroll-accounting" title="Link to this heading"></a></h1>
<section id="journal-entries">
<h2><span class="section-number">2.1. </span>Journal Entries<a class="headerlink" href="#journal-entries" title="Link to this heading"></a></h2>
<p>Payroll accounting is a critical component of the Canadian Payroll Administration system. It involves the systematic recording, analysis, and reporting of payroll transactions to ensure that all financial aspects of employee compensation are accurately reflected in the organization’s financial statements.
Payroll accounting includes the management of employee wages, tax withholdings, benefit deductions, and other payroll-related expenses. The system is designed to automate these processes, ensuring accuracy and compliance with Canadian payroll regulations.</p>
<section id="id1">
<h3><span class="section-number">2.1.1. </span>Journal Entries<a class="headerlink" href="#id1" title="Link to this heading"></a></h3>
<p>Journal entries are a key part of payroll accounting, as they document the financial impact of payroll transactions on the organization’s accounts. Each payroll run generates a series of journal entries that reflect the distribution of wages, taxes, and deductions across various accounts.
These entries are essential for maintaining accurate financial records and ensuring that the organization’s financial statements reflect the true cost of employee compensation. The Canadian Payroll Administration system automates the generation of these journal entries, reducing the risk of errors and ensuring compliance with accounting standards.</p>
<div class="line-block">
<div class="line">DR Payroll Expenses $10,500.00</div>
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<div class="line">CR Payroll Payable $10,500.00</div>
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</div>
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<div class="sphinxsidebar" role="navigation" aria-label="main navigation">
<div class="sphinxsidebar" role="navigation" aria-label="Main">
<div class="sphinxsidebarwrapper">
<div>
<h3><a href="index.html">Table of Contents</a></h3>
<ul>
<li><a class="reference internal" href="#">2. Payroll Accounting</a><ul>
<li><a class="reference internal" href="#journal-entries">2.1. Journal Entries</a></li>
<li><a class="reference internal" href="#journal-entries">2.1. Journal Entries</a><ul>
<li><a class="reference internal" href="#id1">2.1.1. Journal Entries</a></li>
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<div>
<h4>Next topic</h4>
<p class="topless"><a href="review_questions.html"
title="next chapter">REVIEW QUESTIONS</a></p>
title="next chapter"><span class="section-number">3. </span>REVIEW QUESTIONS</a></p>
</div>
<div role="note" aria-label="source link">
<h3>This Page</h3>
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rel="nofollow">Show Source</a></li>
</ul>
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<script>document.getElementById('searchbox').style.display = "block"</script>
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<li class="right" style="margin-right: 10px">
<a href="genindex.html" title="General Index"
>index</a></li>
<li class="right" >
<a href="review_questions.html" title="REVIEW QUESTIONS"
<a href="review_questions.html" title="3. REVIEW QUESTIONS"
>next</a> |</li>
<li class="right" >
<a href="introduction.html" title="1. INTRODUCTION"
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</ul>
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&#169; Copyright 2025, Alexandre Bobkov.
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