How do I accure Directors Salaries in Quickfile

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1

I need to account for Directors salaries that have not yet been paid. I use Journals to account for the monthly payrun, however I am using an external spreadsheet to remember what needs to be paid.

How can I use Quickfile to record that fact that a Director’s net salary has not been paid?

I assume I would use a Directors Loan Account somehow, but I’m not clear on the process. Any help would be most appreciated…

2

What does your payroll journal look like? Mine are generally

  • debit gross wages / director salaries for the gross pay total
  • debit “employer’s NI” for the employer NI contributions
  • credit PAYE for the total tax & employee NI deducted, plus the employer NI paid - i.e. everything that is owed to HMRC
  • credit “net wages” for the amount due to the employee/director

then when the employees are actually paid that’s a credit (money out) on the current account and a debit on “net wages” to offset the liability.

If a director doesn’t actually take their pay in cash, then this payment would be recorded as coming out of the director’s loan account instead of the current account - effectively the director has provided a loan to the company, which the company has used to pay the director’s salary.

3

My payroll journals are similar to yours.

So if I understand correctly, I simply create the transaction in the Director’s Loan Account to pay the “net wages”.

Thanks for clarifying.

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