How to enter income tax paid

[BenB]

I'm an employee. I've always entered my salary as income, paid to my bank account. I've never worried about tax paid directly to the ATO, however this understates my income.

How should I enter the tax paid to the ATO by my employer on my behalf? Is it an equity account?

[DuncanS · Accepted solution]

@BenB 

I would include the Gross and Tax in each transaction by a Bank Rule or recurring transaction.

Would use a Equity Account called Income Tax Paid.

This Account could be transferred yearly to Drawings on receipt of the Assessment. 

Duncan