Employee Expenses & Commission

Accounting
1

We’ve got a new employee who earns commission, and also gets travel expenses reimbursed at a fixed rate per mile.

Would I be right in thinking during payroll, these costs would be moved to the correct nominal account in the payroll journal?

Thanks in advance!

2

You can define additional payments in payroll software to show up in payslip and mark them as subject to tax, NI & Pension or not. Once done then all that can be accounted for in payroll journals

3

Thank you @Accountant, but…
Would I be right in thinking these costs would be moved to the correct nominal account in the payroll journal, either by the software (in my case, the payroll site), or manually?

4

You have to do journals manually

5

Thank you.

In terms of proof of travel expenses then (hotels, fuel etc.), is there a way of linking them to the journal as proof, or just keep a digital copy on the account?

6

You can keep digital or manual copies and mention claim form number as reference in journal

1 Like
7

Thank you. Makes sense!

8

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