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 NameTypeDebit ($)Credit ($)
Salaries & Wages ExpenseExpense (+)1,500.00-
Income Tax Payable (ISTD)Liability (+)-120.00
Salaries Payable / CashLiability (-)-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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