Tax
Employee Income Tax Withholding (Jordan)
Recording the deduction of income tax from an employee's gross salary based on Jordan's tax brackets.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Salaries & Wages Expense | Expense (+) | 1,500.00 | - |
| Income Tax Payable (ISTD) | Liability (+) | - | 120.00 |
| Salaries Payable / Cash | Liability (-) | - | 1,380.00 |
💡 Accountant's Note
In Jordan, employers are legally required to deduct income tax (Withholding Tax) from salaries exceeding the exempt threshold and remit it monthly to the ISTD.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.