Salaries not showing correctly in accounts

Accounting
1

Hi There

Can someone help me.

Ever since I started using Quickfile ( been using since 2013) when I look at my Profit Loss my paid salaries/wages are all over the place.

I always do the correct tagging when paying a salary - either employee or Director, but all paid salaries show under ‘Net Wages’ as an asset.

If I look under ‘Overheads’, the Directors Wages or General Wages are empty.

Im obviously doing something wrong here, but can someone give me a step by step on what I need to do to rectify this?

Many thanks.

2

You have to use journals for this, as the individual payments you make to employees and to HMRC don’t line up exactly with the way these things need to appear in your accounts.

http://community.quickfile.co.uk/t/payroll-posting-issues/5999/4?u=ian_roberts

3

The Journals automatically appear in the balance sheet you then journal the payments as they are made ie

Dr net wages X
Cr director’s salaries X

This will put them in the P&L. I hope that helps.

Kind regards,
Chris

4

Many thanks for the responses.

Can you explain how to enter a new journal. Do I have to do this every time I make a payment or can I do this at the ens of the year?

Sorry to sound like an idiot but want to make sure I am putting it in correctly.

Thanks.

5

Hi,

The journal is normally as follows:

Dr Wages (P&L) X
Dr Employers NI Y

Cr Net Wages (X - PAYE TAX)
Cr PAYE (Y+PAYE TAX)

This is where X is the gross pay and Y is the employers Ni. You should do this after every pay run or get your accountant to do it if they are running your payroll.

Kind regards,
Chris