I have read through some of the other posts on this topic, but i cant understand it.
We have a live bank feed with the wages coming out and i want to take the payment to the journal for that individual… How do i do this?
I followed a post that said you choose “something else not on this list” but it wont find the journal entry for the wages.
Here is an image of how i have put the wages in…
Am i doing something wrong? Oh and on advanced feature i have “Post Net Wages to
Balance Sheet only” switch ON
Hopefully this guide will help? This takes you through the steps on what’s entered and how to tag the payments: Recording payroll
That looks almost right to me except that the “NI Tony” posted to 2211 should be 2210 (PAYE, which covers all your liabilities to HMRC under pay-as-you-earn including income tax, NI, student loans, etc. etc.). If you have “post net wages to balance sheet only” to “ON” then when you tag the bank transaction as a wage payment it will post a debit to 2220 and balance out the credit from this journal. When you pay HMRC tagging it as a tax payment for “PAYE liability” will balance off 2210. And when you pay the pension company you would do that as “something not on the list” to 2230.
Okay, i see, thank you… even though this individual is below the tax threshold would they still be code 2210?
Many thanks for your help
People often tend to use the term “PAYE” as a lazy synonym for “income tax” but remember that the PAYE system includes a number of other things besides just income tax, including class 1 NI (which is what you’re paying here) as well as other things like student loan deductions. The amounts you owe to HMRC for all of these things are reported by your payroll software on your RTI submissions and settled with a single monthly payment.
I’m not sure why there’s a separate nominal code specifically called “national insurance”, I assume that’s for things like class 1A contributions that are handled separately with the P11D rather than through pay-as-you-earn.
Okay, Makes sense, Thanks
This topic was automatically closed after 7 days. New replies are no longer allowed.