Payroll accounting

[Achates]

I want to record my payroll liabilities accurately in Quickfile. Ideally, I would like a Payroll Control Account (balance sheet) to record all payroll liabilities, offset by a Gross Pay entry on the P&L (eg a 700x account). All bank transactions (net pay, PAYE, NI etc) would then post to the Control Account, leaving the P&L correctly stated and the liabilities correctly shown on the Balance Sheet.
Unfortunately, I cannot find a way to post a bank transaction to a Balance Sheet account via Tagging without a simultaneous posting being made to P&L (eg 2220 and 7003).
What am I missing? Do I have to post all payroll-related bank account entries via JV rather than by the bank account interface?

[Parker1090]

If you’re looking to post net wages to the balance sheet, take a look here:

Payroll entries / Net wages into Expenses not B/L

As of today you can now invoke an account wide setting so that any “Net Wages” items tagged from the bank will only be posted to 2220 (Net Wages) and any subsequent movement to the P&L will be left to the user. The new setting can be found in Account Settings >> Company Settings. [image] Here’s the annotation on the above page for this setting, it should provide some context: By default Quick File will post any net salary tagged from the bank to the balance sheet code 2220 (Net Wages) a sim…

For general payroll journaling, there’s a how to guide here:

How do I enter payroll / PAYE journals and entries

Tagging the payment to PAYE from the bank will enter the movement from bank to PAYE on Quick File, the final wages/salary journals need to be entered after you run your payroll, this is in order to take into account both tax and national insurance contributions on the P&L Account and Balance Sheet. I have prepared a worked example, along with the steps to follow below: 1. EXAMPLE: Lets take an example of a payroll report processed through payroll software: Gross wages = £1000.00 Employers …

Hope that helps

[Achates]

Very helpful! I prefer the first option, which seems to work well, albeit I still need a JV to split the Tax and NI parts of a single HMRC bank payment all of which would otherwise appear in the P.A.Y.E. account. The second option essentially involves (as far as I can tell) using a JV to reverse the P&L posting created by the bank tag, ending up with the same result.