Dear Guys how to enter paye refund shown on payslip ?
Gross payment is 900£ and tax refund 12£ so net payment is 912£
Please help!!!
How are you handling the payroll? Normally this sort of thing is handled at the level of the payroll journal - debit gross wages £900, debit PAYE liability £12 (so it’s actually an asset in this case rather than a liability), credit net wages £912. The payment out from the bank is just a balance sheet thing to return “net wages” to zero on the balance sheet.