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

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= Posting the payment of the Wages & PAYE & NI to the Inland Revenue =
+
= Posting the payment of the Wages, PAYE and NI to the Inland Revenue =
  
 
== Paying the Wages ==
 
== Paying the Wages ==
 
* Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
 
* Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
* Enter the Bank Centre (Z992) at the top of the screen.
+
* Enter the Bank Centre (Z992) at the top of the screen and press {{KeyPress|enter}}.
* The Money In/Out flag should be set to “O” as you are paying money out of the bank account.
+
* The Money In/Out flag should be set to 'O' as you are paying money out of the bank account. Press {{KeyPress|enter}}
* Enter the date you are paying the money out
+
* Enter the date you are paying the money out.
* The centre is the Wages Control Centre
+
* In the centre field, enter the Wages Control Centre.
 
* Enter the amount to pay (do not enter this as a negative value)
 
* Enter the amount to pay (do not enter this as a negative value)
 
* The comment should be the period e.g. M1 WAGES.
 
* The comment should be the period e.g. M1 WAGES.
 +
* Press {{KeyPress|escape}} and {{KeyPress|accept}} to post the journal.
  
 
== Paying the Inland Revenue ==
 
== Paying the Inland Revenue ==
 
* Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
 
* Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
* Enter the Bank Centre (Z992) at the top of the screen.
+
* Enter the Bank Centre (Z992) at the top of the screen and press {{KeyPress|enter}}.
* The Money In/Out flag should be set to “O” as you are paying money out of the bank account.
+
* The Money In/Out flag should be set to “O” as you are paying money out of the bank account. Press {{KeyPress|enter}}
* Enter the date you are paying the money out
+
* Enter the date you are paying the money out.
* The centre is the PAYE & NI Control Centre
+
* In the centre field, enter the PAYE & NI Control Centre.
 
* Enter the amount to pay (do not enter this as a negative value)
 
* Enter the amount to pay (do not enter this as a negative value)
* The comment should be the period e.g. M1 PAYE & NI
+
* The comment should be the period e.g. M1 PAYE & NI.
 +
* Press {{KeyPress|escape}} and {{KeyPress|accept}} to post the journal.
  
 
== Paying money to other bodies e.g. Student Loan Company, Council, CSA and Pension Companies ==
 
== Paying money to other bodies e.g. Student Loan Company, Council, CSA and Pension Companies ==
 
* Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
 
* Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
* Enter the Bank Centre (Z992) at the top of the screen.
+
* Enter the Bank Centre (Z992) at the top of the screen and press {{KeyPress|enter}}.
* The Money In/Out flag should be set to “O” as you are paying money out of the bank account.
+
* The Money In/Out flag should be set to 'O' as you are paying money out of the bank account. Press {{KeyPress|enter}}
* Enter the date you are paying the money out
+
* Enter the date you are paying the money out.
* The centre is the relevant code which you have been posting the payroll details to e.g. Student Loan Deductions
+
* The centre is the relevant code which you have been posting the payroll details to e.g. Student Loan Deductions.
 
* Enter the amount to pay (do not enter this as a negative value)
 
* Enter the amount to pay (do not enter this as a negative value)
* The comment should be the period e.g. M1 STUDENT LOAN
+
* The comment should be the period e.g. M1 STUDENT LOAN.
 +
* Press {{KeyPress|escape}} and {{KeyPress|accept}} to post the journal.
  
 
== See Also ==
 
== See Also ==

Revision as of 11:00, 18 December 2009

Summary

The following article explains how to post a wages journal via journal entries. You should have the following Nominal Centres, or similar setup within Platinum:

  • Gross Wages (Purchase Ledger Indicator – Overhead)
  • Directors Remuneration (Purchase Ledger Indicator – Overhead)
  • Employers NI (Purchase Ledger Indicator – Overhead)
  • Wages Control Account (Balance Sheet Indicator – Asset/Liability)
  • Paye & NI Control Account (Balance Sheet Indicator – Asset/Liability)

In Detail

There are three journals to carry out when dealing with wages. One to post the payroll information e.g. the Gross NI & PAYE values owed, one to transfer the money out of the bank account when you actually pay the employees and a third to transfer the money out of the bank when you pay the Inland Revenue.

Posting Payroll Information

Go to "Nominal Ledger"->"Journal Entries"->"Multiple Entry"

  • Enter a suitable date for the journal e.g. the date the wages were processed.
  • Follow the steps below and post all entries on the same journal.

Post the 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.
  • The value should be the Total Gross Pay for the appropriate centre and is a positive value.
  • The comment should be the period e.g. M1 or WK1 and GROSS PAY and press <Enter>
  • Now enter the Wages Control Account centre and post the same Total Gross Pay again, but this time as a negative value.
  • Press <F6> on the Comment field to pick up the same comment as above and then press <Enter>

Post the Tax

  • Enter the Wages Control Account centre.
  • The value should be the Total PAYE for the period and is a positive value.
  • The comment should be the period e.g. M1 or WK1 and PAYE. Press <Enter>
  • Enter the PAYE & NI Control Account and post the Total PAYE, again as a negative value.
  • Press <F6> on the Comment field to pick up the same comment as above. Press <Enter>
The above process has the effect of reducing the amount that you owe the employees and showing the Tax figure as an amount you owe HMRC

Employees National Insurance

  • Now enter the Wages Control Account centre.
  • The value should be the Total Employee’s National Insurance for the period and is a positive value.
  • The comment should be the period e.g. M1 or WK1 and EE’S NI. Press <Enter>
  • Enter the PAYE & NI Control Account and post the Total Employee’s National Insurance as a negative value.
  • Press <F6> on the Comment field to pick up the same comment as above and then press <Enter>

Employers National Insurance

  • Enter the Employers NI centre.
  • The value should be the Total Employer’s National Insurance for the period and is a posted as a positive value.
  • The comment should be the period e.g. M1 or WK1 and ER’S NI. Press <Enter>
  • Enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again as a negative value.
  • Press <F6> on the Comment field to pick up the same comment as above and then press <Enter>


Any other values you should now be posted as appropriate e.g. 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.

Now press <Esc> and <accept> to post the journal.


Posting the payment of the Wages, PAYE and NI to the Inland Revenue

Paying the Wages

  • Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
  • Enter the Bank Centre (Z992) at the top of the screen and press <Enter>.
  • The Money In/Out flag should be set to 'O' as you are paying money out of the bank account. Press <Enter>
  • Enter the date you are paying the money out.
  • In the centre field, enter the Wages Control Centre.
  • Enter the amount to pay (do not enter this as a negative value)
  • The comment should be the period e.g. M1 WAGES.
  • Press <Esc> and <accept> to post the journal.

Paying the Inland Revenue

  • Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
  • Enter the Bank Centre (Z992) at the top of the screen and press <Enter>.
  • The Money In/Out flag should be set to “O” as you are paying money out of the bank account. Press <Enter>
  • Enter the date you are paying the money out.
  • In the centre field, enter the PAYE & NI Control Centre.
  • Enter the amount to pay (do not enter this as a negative value)
  • The comment should be the period e.g. M1 PAYE & NI.
  • Press <Esc> and <accept> to post the journal.

Paying money to other bodies e.g. Student Loan Company, Council, CSA and Pension Companies

  • Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
  • Enter the Bank Centre (Z992) at the top of the screen and press <Enter>.
  • The Money In/Out flag should be set to 'O' as you are paying money out of the bank account. Press <Enter>
  • Enter the date you are paying the money out.
  • The centre is the relevant code which you have been posting the payroll details to e.g. Student Loan Deductions.
  • Enter the amount to pay (do not enter this as a negative value)
  • The comment should be the period e.g. M1 STUDENT LOAN.
  • Press <Esc> and <accept> to post the journal.

See Also


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Keywords AND Misspellings
wages, journal, HMRC