Paying wages from petty cash

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.


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

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


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.