Hello, all of my PAYE payments are showing as assets on the balance sheet. Is there anyway to correct this?
Are you doing payroll journals or just tagging the bank transactions?
I’m tagging bank transaction.
That will be why it is showing as an Asset, when you do the journal, this creates the liability for the bank tagging to then offset and balance out
How do I create the journal to offset the balance ?
There are several threads on here if you search for “payroll journal”, here’s a couple of times I’ve explained it in the past:
Note that the journal may be slightly different if you’ve been tagging the net wages with the default “balance sheet only” setting turned OFF. In that case you’ll need to adjust your backdated journals to put the net wages as a credit on the “net staff salaries paid” nominal (in the 7xxx range) rather than the “net wages” one (in the 2xxx range on your balance sheet). Going forward if you’re doing proper journals from now on then it’s better to turn the “balance sheet only” setting ON and use the 2xxx net wages code in your future journals.