Wages on Balance Sheet

[Phil26599]

Hi

The wages for the last financial year have gone straight to the Balance Sheet. I know how to change the setting so that doesn’t happen in future, but how do I change it to shift the wages on the Balance Sheet over to the P&L? Also, it’s just the net wages, not the gross. How do I rectify this please? Thank you in advance

[QFSteve]

Hello @Phil26599

I know how to change the setting so that doesn’t happen in future, but how do I change it to shift the wages on the Balance Sheet over to the P&L?

As you say when the setting is changed it is for future entries, anything already posted would have to be dealt with a manual journal.

For help with this if you are unsure I would recommend speaking to your accountant for professional tailored advice as the support team are not registered accountants nor bookkeepers.

[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…