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 sheet transaction to debit net wages/PAYE as appropriate.
NB with this setup, you want the “post net wages to balance sheet only” setting to be “on” in your account wide settings, so the bank tagging for “salary payment” goes to the right place. Alternatively if you know the net wage payments will always appear on your bank statement exactly on pay day (you don’t have to send them two days early for bacs) then you can put the net straight to CR bank in the original journal, bypassing the net wages balance sheet entry.