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wages entry

Posted: Tue Feb 14, 2017 10:44 am
by spakeybtin
Hi, has anyone entered wages expenses ?

Re: wages entry

Posted: Wed Feb 15, 2017 10:50 am
by emm
Hi,

This can be done via making journal entries in Account Manager -> Journal. If the accounts mentioned below are not already created, you can set them up under Settings => Chart of Accounts' before you begin the journal entries:

At the end of the month when you know what is to be paid to whom -

1. Click on 'Add Journal'

Line 1: Salaries/Wages Expense Account ---- Enter the amount in the Debit field
Line 2: Salaries Payable Account (Liabilities) ---- Enter the amount in the Credit field
Line 3: PAYE/NI Payable Account (Liabilities) -----Enter the amount in the Credit field
(The two credits should add up to the Debit amount.)

When you actually pay the wages to your staff, make the following Journal entries:
Line 1: Salaries Payable Account -----Enter the amount in the Debit field
Line 2: Bank Account ----Enter the amount in the Credit field

And when you pay PAYE/NI to HMRC, make the following Journal entries:
Line 1: PAYE/NI Payable Account ---- Enter the amount in the Debit field
Line 2: Bank Account ---- Enter the amount in the Credit field.

Hope this helps!

Re: wages entry

Posted: Wed Feb 15, 2017 12:52 pm
by spakeybtin
Thanks, I'll give it a go :)

Re: wages entry

Posted: Fri Mar 03, 2017 12:47 pm
by spakeybtin
Process works out fine, thanks.

Re: wages entry

Posted: Fri Mar 10, 2017 2:46 pm
by emm
Great! Glad it worked for you.

M