Payroll
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Overview of the Default Payroll Accounts

When setting up payroll in Balabook, the following accounts are used by default:

Expense Account (Earnings) :
-Tracks salary expenses
-Can be overridden per employee or earning type

Payroll Payable (Liability):
-Tracks net salaries owed
-Reduces when payments are recorded

Social Insurance Expense:
-Tracks employer contributions
-Automatically calculated


Social Insurance Liability:
-Tracks amounts owed to social insurance
-Can be separated from income tax liability

Income Tax Liability:
-Tracks employee income tax deductions
-Automatically calculated according to Cyprus law

Key Notes:

  • All accounts are configurable under Payroll > Settings.
  • Default accounts are used when creating new earnings or employees unless overridden.
  • Separate accounts can be used for better accounting visibility (e.g., one for social insurance, another for income tax).

Written by

Alexandra Kyriacou