Hi, im a bit confused, ive followed the example in the journal payroll section but its not working out.
On the payslip (from the accountant) it has
Gross pay - £832.00 - Red column
Employeers NI - £18.03 - Red column
PAYE - £0.00 - Green column
NI - £15.72 - Green column
Nett Pay - £816.28 - Green column
But when put in the columns as stated on the journal knowledge base page its incorrect Red column totals 850.08 and Green column totals 832.00
Due to this i cannot save it… Am i doing something wrong?
The exact contacts of a journal isn’t something we’re really able to advise on I’m afraid, as this would generally be best answered by your accountant.
Hmm, okay… Well this is a bit of a pain as something must be incorrect because this is what i have from the accountant. Is there another way of login the wages?
The “red column” is right (assuming £832 is “gross wages” 7000 and £18.03 is “employer’s NI” 7006), but for the green column what you need to do is put the total of everything you owe to HMRC - employer’s NI plus income tax plus employee’s NI (I presume that’s what “NI” means here) - all against the “PAYE” nominal code 2210.
Gross pay £832.00 debit “gross wages” (7000) or “director’s salaries” (7001) depending whether it’s employees or directors.
Employer’s NI £18.03 debit “employer’s NI” (7006)
Employer’s NI + employee’s NI + tax £15.72 + £18.03 = £33.75 credit “PAYE” (2210)
Net pay £816.28 credit “net wages” (2220)
This should make it all balance. Basically gross pay is made up of net pay plus tax plus employee’s NI, and “PAYE” is made up of employee’s NI plus employer’s NI plus tax.
And turn “post net wages to balance sheet only” to “ON”, then when you tag the actual salary payment out of your bank account it’ll go to 2220 and balance that out nicely.
