Which account is credited for the total net pay in payroll accounting?

In payroll accounting, when the total net pay is credited, it reflects the actual payment that the company makes to its employees for their work during a specific period. This amount represents a reduction in the company's cash resources since it is the cash that is being disbursed to pay employees.

When net pay is credited, it signifies that the company is recording a liability, which, once paid out, will involve a decrease in the cash account. The cash account captures all cash transactions, including expenses like payroll. Therefore, recording a credit to cash accurately reflects the flow of funds from the company to the employees, while also indicating that the company has fulfilled its obligation to pay its workers for their services.

The other accounts mentioned would be used in different contexts within payroll accounting, but they do not directly reflect the disbursement of funds to employees. Wages Payable would be credited when recognizing the debt before payment, Payroll Taxes Payable would record liabilities related to taxes that must be remitted, and Expenses Payable would represent obligations to pay for expenses yet to be settled. However, for the total net pay actual cash disbursement, the correct account to credit is cash.