Employee wages and pension payments

[nicky_davies]

hi all i have been using the banking feed to account for employee saleries also pension payments i have now noticed it is not deducting it from my P&L and the total value then is still showing as a profit how do i make these show as deductible against my profits for tax

kind regards Nicky N&N Roofing

[ian_roberts]

Wages are complicated because the way you need to break down the costs on your P&L is not the same as the way the actual payments break down - your P&L needs to show the total gross cost of wages (before any deductions for tax/NI/employee pension contributions) and of the other employment costs (employer pension contributions etc) but the payments break down as tax & NI to HMRC, total employer plus employee pension contributions to the pension provider, and the remaining net to the worker.

So normally you have to use journals.

Recording payroll

Introduction A common query that comes up on our forums are in regards to recording payroll. How you record it does depend on your setup, but we'll look at both options below. The 2 ways that payroll can be handled within QuickFile are: With a payroll journal Without a payroll journal 1. With a payroll journal The advantage of a payroll journal is that it allows you to record it prior to paying your employees, and it would show as a Liability on your balance sheet report. If you run your o…

You create a journal on the pay date that shows the correct P&L entries, and puts the corresponding liabilities (to the employees, to HMRC and to your pension provider) onto balance sheet codes. When you make payment the payment transactions cancel out the liabilities.

[nicky_davies]

Hi thank you for your email they make it very complicated dont they i was hoping i could just put eqch entry in individual as the payments are sent individual as my employee gets his wages the tax man has his bit at a differant time and the pension people get theres … i have put his wage through like stated in the article through banking feeds as salery and other drawings put paye and then his name this has now shown on the balance sheet as capital rather than an expense cheers nicky

[Fauxman24]

Hi Nicky, I have set up an Excel Spreadsheet which takes your figures from your payroll and produces the Journal to input into QuickFile.
If you would like a copy you can email me on dbyard@btinternet.com
Regards
David