Difference between revisions of "How do I post the wages journal?"

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== Summary ==
 
== Summary ==
The following article explains how to post a wages journal using [[Posting Journals|Journal Entries]].
+
The following article explains how to post a wages journal using [[Posting journals|Journal Entries]].
 
You should have the following Nominal Centres (or similar) set up in Platinum:
 
You should have the following Nominal Centres (or similar) set up in Platinum:
  
* Gross Wages (Sales,W/S,Parts etc) (Profit & Loss Indicator Overhead)
+
* Gross Wages (Sales,W/S,Parts etc) (Profit & Loss Indicator - Overhead)
* Directors Remuneration (Profit & Loss Indicator Overhead)
+
* Directors Remuneration (Profit & Loss Indicator - Overhead)
* Employers NI (Profit & Loss Indicator Overhead)
+
* Employers NI (Profit & Loss Indicator - Overhead)
* Wages Control Account (Balance Sheet Indicator Asset/Liability)
+
* Employers Pension Charges (Profit & Loss Indicator - Overhead)
* PAYE & NI Control Account (Balance Sheet Indicator Asset/Liability)
+
* Wages Control Account (Balance Sheet Indicator - Asset/Liability)
 +
* PAYE & NI Control Account (Balance Sheet Indicator - Asset/Liability)
 +
* Pension Control Account (Balance Sheet Indicator - Asset/Liability)
 +
* Employment Allowance (Profit & Loss Indicator - Overhead)
  
 
== More Information ==
 
== More Information ==
Line 16: Line 19:
  
 
=== Posting Payroll Costs ===
 
=== Posting Payroll Costs ===
Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Multiple Entry.}}
+
Go to {{Menu|{{NL}}|Journal Entries}}
* Enter a suitable date for the journal.
+
* At {{DataPrompt|Entry mode}}, choose {{DataValue|Multiple}}.
  
{{Example|text=The date the wages were processed.}}  
+
* At {{DataPrompt|Date}}, enter a suitable date for the journal.
 +
 
 +
{{Example|text=The date the wages were processed.}}
  
 
* Follow the steps below and post all entries on the same journal.
 
* Follow the steps below and post all entries on the same journal.
  
 
=== Gross Wages ===
 
=== Gross Wages ===
* Enter the centre for Wages. If you would like to split the wages into departments or separate Directors pay from employees then enter the appropriate centres.
+
On a line on the list:
* Enter the Total Gross Pay for the appropriate centre as a positive value.
+
* In the {{DataPrompt|Centre}} column, enter the centre for Wages. If you would like to split the wages into departments or separate Directors pay from employees then enter the appropriate centres.
* Enter a comment.  
+
* In the {{DataPrompt|Debit}} column, enter the Total Gross Pay for the appropriate centre.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 +
{{Example|text={{DataValue|Gross M6}}.}}
  
{{Example|text={{DataValue|Gross M6}}.}}
+
On the next line:
 +
* In the {{DataPrompt|Centre}} column, enter the Wages Control Account centre and post the same Total Gross Pay again, but this time in the {{DataPrompt|Credit}} column.
 +
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
  
* Press {{KeyPress|Enter}}.
+
Repeat as many times as necessary if you are splitting Gross Wages into departments.
* Enter the Wages Control Account centre and post the same Total Gross Pay again, but this time as a negative value.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above and then press {{KeyPress|Enter}}.
 
* Repeat as necessary if you are splitting Gross Wages into departments.
 
  
 
=== Tax (PAYE) ===
 
=== Tax (PAYE) ===
* Enter the Wages Control Account centre.
+
On a line on the list:
* Enter the Total Tax for the period as a positive value.
+
* In the {{DataPrompt|Centre}} column, enter the Wages Control Account centre.
* Enter a comment.
+
* In the {{DataPrompt|Debit}} column, enter the Total Tax for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 
{{Example|text={{DataValue|Tax M6}}.}}
 
{{Example|text={{DataValue|Tax M6}}.}}
  
* Press {{KeyPress|Enter}}.
+
On the next line:
* Enter the PAYE & NI Control Account and post the Total Tax as a negative value.
+
* In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Account and post the Total Tax in the {{DataPrompt|Credit}} column.
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
+
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
  
 
{{Note|text=This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.}}
 
{{Note|text=This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.}}
  
 
=== Employees National Insurance ===
 
=== Employees National Insurance ===
* Enter the Wages Control Account centre.
+
On a line on the list:
* Enter the Total Employees' National Insurance for the period as a positive value.
+
* In the {{DataPrompt|Centre}} column, enter the Wages Control Account centre.
* Enter a comment.
+
* In the {{DataPrompt|Debit}} column, enter the Total Employees' National Insurance for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 +
{{Example|text={{DataValue|EE NI M6}}.}}
  
{{Example|text={{DataValue|EE NI M6.}}  
+
On the next line:
 +
* In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Account and post the Total Employees' National Insurance in the {{DataPrompt|Credit}} column.
 +
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
  
*Press {{KeyPress|Enter}}.}}
+
{{Note|text=This reduces the amount that you owe to the employees by the Employees National Insurance figure since you owe this to HMRC.}}
  
* Enter the PAYE & NI Control Account and post the Total Employees' National Insurance as a negative value.
+
=== Employers National Insurance ===
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
+
On a line on the list:
 +
* In the {{DataPrompt|Centre}} column, enter the Employers NI (P&L Overhead) centre.
 +
* In the {{DataPrompt|Debit}} column, enter the Total Employer's National Insurance for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 +
{{Example|text={{DataValue|ER NI M6}}.}}
  
{{Note|text=This reduces the amount that you owe to the employees by the Employees National Insurance figure since you owe this to HMRC.}}
+
On the next line:
 +
* In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Account and post the Total Employer's National Insurance again in the {{DataPrompt|Credit}} column.
 +
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
 +
 
 +
=== Employees Pension Contributions ===
 +
On a line on the list:
 +
* In the {{DataPrompt|Centre}} column, enter the Wages Control centre.
 +
* In the {{DataPrompt|Debit}} column, enter the Total Employee's Pension Contributions for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 +
{{Example|text={{DataValue|EE PENSION M6}}.}}
  
=== Employers National Insurance ===
+
On the next line:
* Enter the Employers NI centre.
+
* In the {{DataPrompt|Centre}} column, enter the Pension Control Account and post the Total Employee's Pension Contributions again in the {{DataPrompt|Credit}} column.
* Enter the Total Employer’s National Insurance for the period as a positive value.
+
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
* Enter a comment.
 
  
{{Example|text={{DataValue|ER NI M6}}.}}  
+
=== Employers Pension Contributions ===
 +
On a line on the list:
 +
* In the {{DataPrompt|Centre}} column, enter the Pension Charges (P&L Overhead) centre.
 +
* In the {{DataPrompt|Debit}} column, enter the Total Employer's Pension Contributions for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 +
{{Example|text={{DataValue|ER PENSION M6}}.}}
  
Press {{KeyPress|Enter}}.
+
On the next line:
* Enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again as a negative value.
+
* In the {{DataPrompt|Centre}} column, enter the Pension Control Account and post the Total Employer's Pension Contributions again in the {{DataPrompt|Credit}} column.
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
+
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
  
 
{{Note|text=Post any other values appropriately.}}
 
{{Note|text=Post any other values appropriately.}}
  
{{Example|text=Tax Credits should be posted as a debit (positive) to the PAYE & NI Control Account and as a credit to the Wages Control Account; Pensions deducted after tax could debit Wages Control and credit Pension Control; Student Loan Deductions could debit Wages Control and credit Student Loan Control etc.}}
+
{{Example|text=Tax Credits should be posted in the {{DataPrompt|Debit}} column to the PAYE & NI Control Account and in the {{DataPrompt|Credit}} column to the Wages Control Account; Student Loan Deductions could debit Wages Control and credit Student Loan Control etc.}}
  
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
+
* Press {{KeyPress|ESC}} and {{KeyPress|Accept}} to post the journal.
  
 +
==== Example Journal ====
 +
{{Information|text=Please click [[Media:Example.pdf|here]] to download an example of a Payroll Analysis and the journal to post.}}
 +
 +
=== Employment Allowance ===
 +
If you are entitled to [[How do I claim employment allowance?|employment allowance]] you will need to post an additional journal.
 +
 +
* In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Account centre.
 +
* In the {{DataPrompt|Debit}} column, enter the Employment Allowance which has been deducted from this period's NI contributions for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.{{Example|text={{DataValue|EMP ALLOW M6}}.}}
 +
 +
On the next line:
 +
* In the {{DataPrompt|Centre}} column, enter the Employment Allowance (P&L Overhead) centre and post the value allowed again in the {{DataPrompt|Credit}} column.
 +
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
 +
 +
To check the value that has been allowed this period please view the [[How do I close a payroll period?#Employer Payment Summary (EPS)|'''E'''mployer '''P'''ayment '''S'''ummary (EPS)]].
 
=== Posting the Payment of the Wages ===
 
=== Posting the Payment of the Wages ===
  
 
==== Paying the Wages ====
 
==== Paying the Wages ====
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
+
* Go to {{Menu|{{NL}}|Journal Entries}}
* Enter your Bank Centre and press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Entry mode}}, choose {{DataValue|Cashbook}}.
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Money in/out}}, choose {{DataValue|out}} as you are paying money out of the bank account.
* Enter the date you are paying the money out.
+
* On the highlighted line, enter your Bank Centre.
* Enter the Wages Control Centre.
+
* On the next line:
* Enter the amount to pay (do not enter this as a negative value).
+
** In the {{DataPrompt|Centre}} column, enter the Wages Control Centre.
* Enter the comment.  
+
** In the {{DataPrompt|Date}} column, enter the date you are paying the money out.
 
+
** In the {{DataPrompt|Debit}} column, enter the amount to pay.
 +
** In the {{DataPrompt|Comment}}, enter a comment.
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
  
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
+
* Press {{KeyPress|ESC}} and {{KeyPress|Accept}} to post the journal.
  
 
=== Posting the Payment to HMRC ===
 
=== Posting the Payment to HMRC ===
  
 
==== Paying HMRC ====
 
==== Paying HMRC ====
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
+
* Go to {{Menu|{{NL}}|Journal Entries}}
* Enter your Bank Centre and press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Entry mode}}, choose {{DataValue|Cashbook}}.
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Money in/out}}, choose {{DataValue|out}} as you are paying money out of the bank account.
* Enter the date you are paying the money out.
+
* On the highlighted line, enter your Bank Centre.
* Enter the PAYE & NI Control Centre.
+
* On the next line:
* Enter the amount to pay (do not enter this as a negative value).
+
** In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Centre.
* Enter the comment.
+
** In the {{DataPrompt|Date}} column, enter the date you are paying the money out.
 
+
** In the {{DataPrompt|Debit}} column, enter the amount to pay.
 +
** In the {{DataPrompt|Comment}}, enter a comment.
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
  
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
+
* Press {{KeyPress|ESC}} and {{KeyPress|Accept}} to post the journal.
 
 
=== Paying money to other bodies e.g. Student Loan Company, Council, CSA and Pension Companies ===
 
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
 
* Enter your Bank Centre and press {{KeyPress|Enter}}.
 
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
 
* Enter the date you are paying the money out.
 
* Enter the relevant code to which you have been posting the payroll details.
 
 
 
{{Example|text=Student Loan Deductions.}}
 
  
* Enter the amount to pay (do not enter this as a negative value).
+
=== Paying Money to Other Bodies ===
* Enter the comment.
+
{{Example|text=Student Loan Company, Council, CSA and Pension Companies.}}
  
{{Example|text={{DataValue|WAGES PAID M6}}.}}
+
* Go to {{Menu|{{NL}}|Journal Entries}}
 +
* At {{DataPrompt|Entry mode}}, choose {{DataValue|Cashbook}}.
 +
* At {{DataPrompt|Money in/out}}, choose {{DataValue|out}} as you are paying money out of the bank account.
 +
* On the highlighted line, enter your Bank Centre.
 +
* On the next line:
 +
** In the {{DataPrompt|Centre}} column, enter the relevant code to which you have been posting the payroll details e.g. Pension Deductions.
 +
** In the {{DataPrompt|Date}} column, enter the date you are paying the money out.
 +
** In the {{DataPrompt|Debit}} column, enter the amount to pay.
 +
** In the {{DataPrompt|Comment}}, enter a comment.
 +
{{Example|text={{DataValue|PENSIONS M6}}.}}
  
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
+
* Press {{KeyPress|ESC}} and {{KeyPress|Accept}} to post the journal.
  
 
== See also ==
 
== See also ==
* [[How do I Run a Payroll Period?]]
+
* [[How do I run a payroll period?]]
* [[Posting Journals]]
+
* [[Posting journals]]
* [[Posting Cashbook entries]]
+
* [[Posting cashbook entries]]
* [[What is a Nominal Code?]]
+
* [[What is a nominal code?]]
* [[Recommended Accounting Routines]]
+
* [[How do I journal a Covid19 grant?]]
 +
* [[Recommended accounting routines]]
  
{{KB_Tags|wages, journal, HMRC, gross, PAYE, national insurance}}{{KB_NL}}{{KB_PR}}{{ZN_Accounts}}
+
{{KB_Tags|wages, journal, hmrc, gross, paye, national insurance, pension, tax, nett, payroll}}
 +
{{How}}{{KB_NL}}{{KB_PR}}{{ZN_Accounts}}

Latest revision as of 18:26, 13 May 2020

Summary

The following article explains how to post a wages journal using Journal Entries. You should have the following Nominal Centres (or similar) set up in Platinum:

  • Gross Wages (Sales,W/S,Parts etc) (Profit & Loss Indicator - Overhead)
  • Directors Remuneration (Profit & Loss Indicator - Overhead)
  • Employers NI (Profit & Loss Indicator - Overhead)
  • Employers Pension Charges (Profit & Loss Indicator - Overhead)
  • Wages Control Account (Balance Sheet Indicator - Asset/Liability)
  • PAYE & NI Control Account (Balance Sheet Indicator - Asset/Liability)
  • Pension Control Account (Balance Sheet Indicator - Asset/Liability)
  • Employment Allowance (Profit & Loss Indicator - Overhead)

More Information

There are three journals to carry out when dealing with wages:

  • First - to post the payroll costs, i.e. the Gross Wages and Employers NI.
  • Second - to transfer the money out of the bank account when you actually pay the employees.
  • Third - to transfer the money out of the bank when you pay the Inland Revenue.

Posting Payroll Costs

Go to " Nominal Ledger Journal Entries"

  • At "Entry mode", choose 'Multiple'.
  • At "Date", enter a suitable date for the journal.
The date the wages were processed.
  • Follow the steps below and post all entries on the same journal.

Gross Wages

On a line on the list:

  • In the "Centre" column, enter the centre for Wages. If you would like to split the wages into departments or separate Directors pay from employees then enter the appropriate centres.
  • In the "Debit" column, enter the Total Gross Pay for the appropriate centre.
  • In the "Comment", enter a comment.
'Gross M6'.

On the next line:

  • In the "Centre" column, enter the Wages Control Account centre and post the same Total Gross Pay again, but this time in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.

Repeat as many times as necessary if you are splitting Gross Wages into departments.

Tax (PAYE)

On a line on the list:

  • In the "Centre" column, enter the Wages Control Account centre.
  • In the "Debit" column, enter the Total Tax for the period.
  • In the "Comment", enter a comment.
'Tax M6'.

On the next line:

  • In the "Centre" column, enter the PAYE & NI Control Account and post the Total Tax in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.

Employees National Insurance

On a line on the list:

  • In the "Centre" column, enter the Wages Control Account centre.
  • In the "Debit" column, enter the Total Employees' National Insurance for the period.
  • In the "Comment", enter a comment.
'EE NI M6'.

On the next line:

  • In the "Centre" column, enter the PAYE & NI Control Account and post the Total Employees' National Insurance in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
This reduces the amount that you owe to the employees by the Employees National Insurance figure since you owe this to HMRC.

Employers National Insurance

On a line on the list:

  • In the "Centre" column, enter the Employers NI (P&L Overhead) centre.
  • In the "Debit" column, enter the Total Employer's National Insurance for the period.
  • In the "Comment", enter a comment.
'ER NI M6'.

On the next line:

  • In the "Centre" column, enter the PAYE & NI Control Account and post the Total Employer's National Insurance again in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.

Employees Pension Contributions

On a line on the list:

  • In the "Centre" column, enter the Wages Control centre.
  • In the "Debit" column, enter the Total Employee's Pension Contributions for the period.
  • In the "Comment", enter a comment.
'EE PENSION M6'.

On the next line:

  • In the "Centre" column, enter the Pension Control Account and post the Total Employee's Pension Contributions again in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.

Employers Pension Contributions

On a line on the list:

  • In the "Centre" column, enter the Pension Charges (P&L Overhead) centre.
  • In the "Debit" column, enter the Total Employer's Pension Contributions for the period.
  • In the "Comment", enter a comment.
'ER PENSION M6'.

On the next line:

  • In the "Centre" column, enter the Pension Control Account and post the Total Employer's Pension Contributions again in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
Post any other values appropriately.
Tax Credits should be posted in the "Debit" column to the PAYE & NI Control Account and in the "Credit" column to the Wages Control Account; Student Loan Deductions could debit Wages Control and credit Student Loan Control etc.
  • Press <Esc> and <Accept> to post the journal.

Example Journal

Please click here to download an example of a Payroll Analysis and the journal to post.

Employment Allowance

If you are entitled to employment allowance you will need to post an additional journal.

  • In the "Centre" column, enter the PAYE & NI Control Account centre.
  • In the "Debit" column, enter the Employment Allowance which has been deducted from this period's NI contributions for the period.
  • In the "Comment", enter a comment.
    'EMP ALLOW M6'.

On the next line:

  • In the "Centre" column, enter the Employment Allowance (P&L Overhead) centre and post the value allowed again in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.

To check the value that has been allowed this period please view the Employer Payment Summary (EPS).

Posting the Payment of the Wages

Paying the Wages

  • Go to " Nominal Ledger Journal Entries"
  • At "Entry mode", choose 'Cashbook'.
  • At "Money in/out", choose 'out' as you are paying money out of the bank account.
  • On the highlighted line, enter your Bank Centre.
  • On the next line:
    • In the "Centre" column, enter the Wages Control Centre.
    • In the "Date" column, enter the date you are paying the money out.
    • In the "Debit" column, enter the amount to pay.
    • In the "Comment", enter a comment.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

Posting the Payment to HMRC

Paying HMRC

  • Go to " Nominal Ledger Journal Entries"
  • At "Entry mode", choose 'Cashbook'.
  • At "Money in/out", choose 'out' as you are paying money out of the bank account.
  • On the highlighted line, enter your Bank Centre.
  • On the next line:
    • In the "Centre" column, enter the PAYE & NI Control Centre.
    • In the "Date" column, enter the date you are paying the money out.
    • In the "Debit" column, enter the amount to pay.
    • In the "Comment", enter a comment.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

Paying Money to Other Bodies

Student Loan Company, Council, CSA and Pension Companies.
  • Go to " Nominal Ledger Journal Entries"
  • At "Entry mode", choose 'Cashbook'.
  • At "Money in/out", choose 'out' as you are paying money out of the bank account.
  • On the highlighted line, enter your Bank Centre.
  • On the next line:
    • In the "Centre" column, enter the relevant code to which you have been posting the payroll details e.g. Pension Deductions.
    • In the "Date" column, enter the date you are paying the money out.
    • In the "Debit" column, enter the amount to pay.
    • In the "Comment", enter a comment.
'PENSIONS M6'.
  • Press <Esc> and <Accept> to post the journal.

See also


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Keywords AND Misspellings
wages, journal, hmrc, gross, paye, national insurance, pension, tax, nett, payroll