How to enter PAYE NIC Salaries

[ian_roberts]

I’ve posted about this a few times, this is probably the most succinct of my explanations I could find in the archives:

Payroll related accounts

The usual way to handle payroll in QuickFile is with a journal on the pay date that does DR “gross wages” (P&L) for the gross pay before deductions (tax, employee NI, etc) DR “employers NI” (P&L) for the employer’s national insurance CR “PAYE” (balance sheet) for the amount that will be paid to HMRC (tax, employee & employer NI, etc) CR “net wages” (balance sheet) for the net amount due to the employees The actual payment out from the bank to the employees and to HMRC is then purely a balance…