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How do I account for wages paid out of cash


#1

Hi, I am new to quickfile so please lead me gently. I pay my casual worker out of the cash takings each week. So nothing goes through the bank account. How do I account for these payments?
DO I create a purchase and pay from petty cash?
Thanks for you help


#2

Are you register for payroll? if yes instead of bank use cash account to record net wages or if they are your sub contractors then again use cash account to tag to subcontractors


#3

Hi Faraday, thanks for your reply
What do you mean registered for payroll? Is that something I do within quickfile?
I am of course registered to HMRC via PAYE tool

Reading further it seems there are third party payroll software that may integrate with QF. I am just a small retail business with a total of 3 employees. We use PAYE tools of whatever it is called now. Thats the basic HMRC payroll software.
I want to know how do I account for cash payments to staff as nett wages out of takings (petty cash) each week.
Thanks for your help


#4

Make sure “Post Net Wages to Balance Sheet only” is turned ON under Account setting>Company setting>Advanced features
Then record money out from petty cash and tag it to Salary, dividend or other drawings pick Payment Type Employee Salary (PAYE)


#5

Thanks Faraday,
How do I record money out from petty cash. As I say I am new to this. DO I raise a purchase as paid by petty cash then tag it as salary?

Ahh I see I go to bank accounts got it no need to do new transaction.
Thanks I am getting the hang of it. But sure I will be along later for more instruction
Thanks for you help


#6

Just go to petty cash and click on input new transaction and pick Money out under Type. NO need of invoice for wages


#7

Petty Cash is under the Banking tab.

Not intuitive but there is no other logical place for it.


#8

Thanks to you both.
I am slowly getting the hang of it.