Wages / Salaries


i in put wages / salaries and they show in my accounts as both a debit and a credit. Why is this?

This is double-entry bookkeeping. Every transaction has a debit and a credit.

Journals for wages
Dr a/c# 7000 Gross Wages
Dr a/c# 7006 Employers N.I.
Cr a/c# 2210P.A.Y.E.
Cr a/c # 2220 Net Wages

You may also find the posting below helpful:

Hi. Thank you for your reply. Can I just clarify where I code the Nett salary to, is it Nett staff Salaries 7003 or Nett salaries 2220 please?

Sorry, Also where do I code Student Loan or any SMP? Thank you

Hi @eftlizzie

We have an example in the knowledge base which includes an entry for student loan:
Recording payroll

Regarding SMP / SPP, you can use other nominal codes as part of the journal. Please see the posts in this thread: Nominal Account 7012 Statutory Paternity Pay

Hope that helps!

If you’re entering proper journals for your payroll then use 2220 and make sure “Post Net Wages to Balance Sheet only” is set to “ON” in your account settings → advanced features.

Many thanks for your help. All is correct now.

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