Paying wages from petty cash

Accounting
1

I pay my apprentice from the petty cash account. This is how I think i log this in quickfile. I create an invoice an put it in the petty cash account and then i presume i then tag it with salary dividends etc and this will then come out of the petty cash account. Is this correct.

Thanks

2

Any payments required to run payroll cannot be done through invoicing.

3

OK how is it done then. Can I still use the petty cash account and not the main current account?

Thanks

4

The Petty Cash account is just another type of bank account so you can apply the same rules you would if you paid your staff from a bank account. Although you should only tag as a dividend if the recipient is a shareholder, otherwise you’d normally be enrolled for PAYE and you would tag from the bank as such.