Wages / Salaries

[siennamai]

Hi

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

[Glenn]

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

[FaradayKeynes]

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

[Joe]

You may also find the posting below helpful:

@Joe

Tagging the payment to PAYE from the bank will enter the movement from bank to PAYE on Quick File, the final wages/salary journals need to be entered after you run your payroll, this is in order to take into account both tax and national insurance contributions on the P&L Account and Balance Sheet. I have prepared a worked example, along with the steps to follow below:

[eftlizzie]

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?

[eftlizzie]

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

[QFMathew]

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!

[ian_roberts]

@eftlizzie

Can I just clarify where I code the Nett salary to, is it Nett staff Salaries 7003 or Nett salaries 2220 please?

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.

[eftlizzie]

Many thanks for your help. All is correct now.