Wages on Balance Sheet

[ian_roberts]

For anything beyond the very simplest case of a wage payment with no deductions for tax, NI, or anything else, you want the net wage payments to go to the balance sheet only. You then handle the P&L elements with a journal:

Payroll related accounts

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…