USA How to record or post tax payments

[gmconsulting]

I have a client that paid payroll taxes for a previous year (2014) in the 2015 tax year. Exactly how should this transaction be recorded in the 2015 accounting file.

 

[kirby]

Tax liability should have been recorded in 2014. Then in 2015 the cash payment credit entry is offset with the debit to the accrued payroll taxes account