Hello, Glenn can you tell me what excatly nominal account 7001 Directors Salaries is for?
Does it reflect NET Directors Salaries paid from the bank or does it reflect GROSS Director salaries (NET Director Salary paid from bank + PAYE + Employee NI contribution)?
I’m asking because you have ZERO information about how to account for salaries in your knowledge base if I am running separate PAYROLL software.
A tutorial from Joe about the correct way on how to account for Director Salaries and Employee salaries would be nice to have.
Does employee salaries and director salaries should be shown separately on the Profit & Loss Report?
Sorry for a noob question, but I’m doing in for the first time.
7001 is NET salaries paid from the bank. When you tag a salary from the bank and tick the box to show that it’s a director’s salary it will be posted to 7001. Otherwise a regular salary would be posted to 7003.
Thanks for reply. I see.
So, it means that after the NET directors and employees salaries has been tagged to 7001 and 7003, a journals need to be created to gross all them up to the 7000 Gross Wages along with the necessary movement in P.A.Y.E and Employers N.I.
So that in the Profit & Loss Report we would only have 7000 Gross Wages and 7006 Employers N.I.
Correct?