Continuing the discussion from Payroll, and PAYE/NIC payments:
I too have encountered this problem. I want PAYE and NI to show separately. I have, therefore, used the other option when tagging and then split my payment between my NI & PAYE liability codes. Is there any problem with doing this?
There’s nothing inherently wrong with what you’ve said you’re doing, but do you really need them separate on the balance sheet as well as in the P&L? Normally the payroll journal entry would put separate values against the P&L codes for gross wages and employer NI, but put the balance sheet liability for income tax, employer and employee NI, student loan deductions, etc (which are all part of Pay-As-You-Earn) under one “PAYE” code.
Thank you. You are right, I don’t need them to show separate on the balance sheet. In fact, as they are deductions from employees only, there is no expense to the company anyway. (we are small so the employers’ NI is covered by the allowance).
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