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Wages / Salaries


#1

Hi

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


How to enter PAYE NIC Salaries
#2

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


#3

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


#4

You may also find the posting below helpful:


#5

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?


#6

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


#7

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!


#8

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.


#9

Many thanks for your help. All is correct now.