| Recent Answers from Carlton Johnson, LPA, MFP, ABA |
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2008-06-30 Accounting of Bonus: Hi Jayakumar, The accounting for a bonus can be the same as accounting for salaries. A simplified version of this is illustrated below (with description below). Dr. Salaries Expense - Bonus Cr....
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2008-06-18 LLC & Special Allocations: Hi Stephen, The plain English approach, as you have described, is adequate to write the agreement. The trick is here to keep detailed records as you bill jobs and ensure that you mutually agree to the...
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2008-06-16 Payroll: Hi Emily, Paying your nanny through your company is not advisable. It violates the separation of you from your business. Additionally, it could later form the basis of allowing creditors and suing parties...
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2008-06-13 Employee deductions: Hi Laura, The accounting treatment for employee deductions from pay would be modeled as follows: Dr. Wage Expense Cr. Payable (EmplEE insurance) Additionally, when considering any employee deduction...
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2008-06-13 Direct Deposit: Hi Chad, Unfortunately, your employer can require you to have direct deposit for a method of payment as a term of employment. (Some, do however, issue a manual check for two pay periods while a process...
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