Hello, all of my PAYE payments are showing as assets on the balance sheet. Is there anyway to correct this?
QFBeth
6 November 2019 15:17
2
Hi @April_van_Buuren ,
Are you doing payroll journals or just tagging the bank transactions?
Hi,
I’m tagging bank transaction.
Thanks
QFBeth
6 November 2019 16:30
4
Hi @April_van_Buuren ,
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
Hi,
How do I create the journal to offset the balance ?
Thanks
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:
The usual way to handle payroll in QuickFile is with a journal on the pay date that does
DR “gross wages” (P&L) for the gross pay before deductions (tax, employee NI, etc)
DR “employers NI” (P&L) for the employer’s national insurance
CR “PAYE” (balance sheet) for the amount that will be paid to HMRC (tax, employee & employer NI, etc)
CR “net wages” (balance sheet) for the net amount due to the employees
The actual payment out from the bank to the employees and to HMRC is then purely a balance…
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” (700…
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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.
QFSian
Closed
23 December 2019 18:00
9
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