Payroll journal issue

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1

Hi Guys,

Looking for some guidance please.

So I am using quick for my main business (Ltd Company, Vat Reg, QF Account Size XL) which QuickFile works brilliantly for (Have used for past 3 years - High volume of transactions as Ecommerce).

I have another small company (None VAT Reg) that I am also using QucikFile however we are having some difficulties with Wages & Journaling with this new small company.

With our main larger company, we Journal wages every month as follows:

7015 Directors Wages (Gross Directors Wages) Debit
2211 National Insurance (NIC Employee Wages) Credit
2210 PAYE (PAYE) Credit
2200 Net Wages (Net Wages) Credit

(we also journal NEST however for the purpose of this problem, this is not relevant)

I then also create an event on the bank for say Directors Wages i.e. £1000 and tag this to Salary, Dividend or Other Drawing, then Employee Salary (PAYE) and then I also tick the box ‘Tick if Director’

When I then go to the chart of accounts the directors wages appear in 7015 and there is nothing in 7001 (Directors Salary) or anywhere else.
Also when I tag directors salary on the bank account as described above no additional journal is created. This all seems to work fine and the accountant is happy.

With my other small company, we are trying to do exactly the only difference is that we are not paying directors salary, it is just 1 employee on Payroll. I have set up exactly the same see below:

7014 Staff Wages (Gross Staff Wages) Debit
2210 PAYE (PAYE) Credit
2200 Net Wages (Net Wages) Credit

The problem occurs when I create and tag the wage as an out in the bank as above and Quick Files then also creates another Journal for the wages payment which QuickFiles automatically titles and posts as follows:

1200 Current Account
2200 Net Wages : Net Wages (Created from bank transaction)
2200 Net Wages : Movement To PL (Created from bank transaction)
7003 Net Staff Salaries Paid : Movement To PL (Created from bank transaction)

I then have a duplicate situation where I am journaling the wages and so is quickfile.This duplication doesn’t happen in our main business. Is this correct regarding both businesses and how can I stop it happening?

Any help would be much appreciated. Many thanks in advance

2

The journal to move to 7003 is what happens if “post net wages to balance sheet only” is turned OFF in your QuickFile account settings (this is the default for new accounts), but if you’re doing your own payroll journals you should turn that setting ON, which makes bank tagging of wages simply post directly to 2200 without creating an extra journal.

3

Perfect, Thank you Ian, thats sorted it!

Many thanks

4

Great. By the way, there should be no need to separate

It can all go on 2210 - “PAYE” doesn’t just mean income tax, it also includes other things that are accounted for under pay-as-you-earn including class 1 NI and student loans. I believe 2211 is intended more for things like Class 1A contributions that are handled outside the usual PAYE cycle.

5

Thats Great Ian, thanks for that.

6

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