Hello
I had looked at my profit and loss report.
On the P&L report there is a net profit showing on which I assume they calculate corporation tax… It does not seem to deduct the PAYE , NIC I paid.
your help would be highly appreciated.
KL
Did you book journal for Payroll, if yes then gross salaries covers employees NI & PAYE, Employer NI should be part of journal. Paying PAYE is different from what it should be in P&L
PAYE & Empl Ni are deductible expenses, Employee tax and NI are part of gross salary figure and Employer NI need to be accounted for seperatly.
Example : Gross salary 200 tax 10 , Employee NI 5, Employer NI 15
Journal will be
Dr Salary 200
Dr Employer NI 15
Cr PAYE payable 30 (10+5+15) (balance sheet item)
Cr Net salary payable 185 (200-10-5) (balance sheet item)
and when time to pay from bank
Dr Net salary 185
Cr bank 185
Dr PAYE payable 30
Cr bank 30
@Accountant thanks for clarifying! I think if you tag from the bank it should affect the P&L, sorry I’m not an accountant myself but I will wait for @joe to clarify.
EDIT
Forget that! I really shouldn’t comment on these threads
No it should not if balance sheet account is picked to debit
@logoznyk you may find the posting below useful:
http://community.quickfile.co.uk/t/how-do-i-enter-payroll-paye-journals-and-entries/53
If you need any further help, let me know.
Thank you all! I will try to make sense out of it!
I am very suprised how quickly we get a response on this forum!!!
Best of luck everybody!!!