Journals and wage tagging

[Nexolutions]

Hi, I am creating journals for each months payroll on Quickfile with all details like net wages (2220)/ Gross etc and i’m also listing the employee salaries to the bank account and tagging them to the Net Wages account. These two logs should cancel each other out on the balance sheet, but there not.

The salary payments for each employee is showing as a debit and credit. The debit payment is correct being attributed to the bank account which balances the account, the credit payment is incorrect which is being attributed to Net Wages, when the journal has already accounted for this. We need to keep the journals, so how do we delete / deal with the Credit records?

[QFMathew]

Hi @Nexolutions

I can see that you have quite a few journals, but your Month 10 journal uses 7003, whereas the month 11 journal uses 2220.

It appears that month 11 is the only journal that uses 2220.

This thread may be of some help to you in regards to the journal, or check with your accountant as they should be able to help:

How do I enter payroll / PAYE journals and entries

Tagging the payment to PAYE from the bank will enter the movement from bank to PAYE on Quick File, the final wages/salary journals need to be entered after you run your payroll, this is in order to take into account both tax and national insurance contributions on the P&L Account and Balance Sheet. I have prepared a worked example, along with the steps to follow below: 1. EXAMPLE: Lets take an example of a payroll report processed through payroll software: Gross wages = £1000.00 Employers …

Are you aware if this setting has changed recently? This would change where the salary payments are tagged to

[Nexolutions]

I have changed the posting from 7003 to 2220 for all four journals showing for the net wages account?

And the ‘Post Net Wages to Balance Sheet’ option has been turned off, so why are they being logged there?

[QFMathew]

Previously, the payments have been tagged to 2220, but with the ‘Post Net Wages to Balance Sheet’ being turned off, it automatically creates a second posting to the P&L account (check 2220 on 01/02/2016).

The entry to 2220 on 29th February has been introduced because of a journal (Month 11), which as I mentioned above seems to post to 7003 rather 2220.

@Nexolutions

I have changed the posting from 7003 to 2220 for all four journals showing for the net wages account?

Month 11 is the only journal that I can see that posts to 2220. If you could tell me what other journals you have changed please, I’ll take a closer look for you?