Making Entries for Salary payment (Simple case)
I have an incorporated Canadian company with a sole employee - myself. I want to pay myself a salary of X dollars monthly.
As per my accountant, the Gross salary would have 3 components -
1- The Net Salary - Transfer from Corporate account to Personal Bank account
2- Employee Personal Income Tax deductions - Pay to CRA through Bank Transfer from Corporate account to CRA
3- CPP Deduction (Employee Contribution part) - Transfer from Corporate account to CPP Account.
Under which expense headers will these 3 items be recorded?
So far, I have logged 1) under Expense > Payroll Expense > Salary
Should I create below two to account for the others?
Expense > Payroll Expense > Taxes sent to CRA
Expense > Payroll Expense > CPP ?