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 | + | You should have the following Nominal Centres (or similar) set up in Platinum: |
| − | You should have the following Nominal Centres | ||
| − | *Gross Wages (Purchase Ledger Indicator – Overhead) | + | * Gross Wages (Purchase Ledger Indicator – Overhead) |
| − | *Directors Remuneration (Purchase Ledger Indicator – Overhead) | + | * Directors Remuneration (Purchase Ledger Indicator – Overhead) |
| − | *Employers NI (Purchase Ledger Indicator – Overhead) | + | * Employers NI (Purchase Ledger Indicator – Overhead) |
| − | *Wages Control Account (Balance Sheet Indicator – Asset/Liability) | + | * Wages Control Account (Balance Sheet Indicator – Asset/Liability) |
| − | * | + | * PAYE & NI Control Account (Balance Sheet Indicator – Asset/Liability) |
| − | = | + | == More Information == |
| − | There are three journals to carry out when dealing with wages | + | 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 | + | == Posting Payroll Costs == |
| − | Go to " | + | Go to "{{NL}}" -> "Journal Entries" -> "Multiple Entry" |
| − | *Enter a suitable date for the journal e.g. the date the wages were processed. | + | * 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. | + | * Follow the steps below and post all entries on the same journal. |
| − | == Post the Gross Wages == | + | === 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. | * 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 the Total Gross Pay for the appropriate centre as a positive value. |
| − | * | + | * Enter a comment e.g. {{DataValue|Gross M6}} and press {{KeyPress|Enter}}. |
| − | * | + | * 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 Comment field to pick up the same comment as above and then press {{KeyPress| | + | * Press {{KeyPress|F6}} on the Comment field to pick up the same comment as above and then press {{KeyPress|Enter}}. |
| − | == Post the Tax == | + | === Post the Tax === |
* Enter the Wages Control Account centre. | * Enter the Wages Control Account centre. | ||
| − | * | + | * Enter the Total Tax for the period as a positive value. |
| − | * | + | * Enter a comment e.g. {{DataValue|Tax M6}}. Press {{KeyPress|Enter}}. |
| − | * Enter the PAYE & NI Control Account and post the Total | + | * Enter the PAYE & NI Control Account and post the Total Tax as a negative value. |
| − | * Press {{KeyPress|F6}} on the Comment field to pick up the same comment as above. Press {{KeyPress| | + | * Press {{KeyPress|F6}} on the Comment field to pick up the same comment as above. Press {{KeyPress|Enter}}. |
{{Note|text=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}} | {{Note|text=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 == | + | === Employees National Insurance === |
| − | * | + | * Enter the Wages Control Account centre. |
| − | * | + | * Enter the Total Employees' National Insurance for the period as a positive value. |
| − | * | + | * Enter a comment e.g. {{DataValue|EE NI M6}}. Press {{KeyPress|Enter}}. |
| − | * Enter the PAYE & NI Control Account and post the Total | + | * Enter the PAYE & NI Control Account and post the Total Employees' National Insurance as a negative value. |
| − | * Press {{KeyPress|F6}} on the Comment field to pick up the same comment as above | + | * Press {{KeyPress|F6}} on the Comment field to pick up the same comment as above. Press {{KeyPress|Enter}}. |
| − | == Employers National Insurance == | + | === Employers National Insurance === |
* Enter the Employers NI centre. | * Enter the Employers NI centre. | ||
| − | * | + | * Enter the Total Employer’s National Insurance for the period as a positive value. |
| − | * | + | * Enter a comment e.g. {{DataValue|ER NI M6}}. Press {{KeyPress|Enter}}. |
* Enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again as a negative value. | * Enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again as a negative value. | ||
| − | * Press {{KeyPress|F6}} on the Comment field to pick up the same comment as above | + | * Press {{KeyPress|F6}} on the Comment field to pick up the same comment as above. Press {{KeyPress|Enter}}. |
| + | {{Note|text=Post any other values appropriately, 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 {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal. |
| − | |||
| + | == Posting the Payment of the Wages == | ||
| + | === Paying the Wages === | ||
| + | * Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". | ||
| + | * Enter the Bank Centre (Z992) 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 Wages Control Centre. | ||
| + | * Enter the amount to pay (do not enter this as a negative value). | ||
| + | * Enter the comment e.g. {{DataValue|WAGES PAID M6}}. | ||
| + | * Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal. | ||
| − | = Posting the | + | == Posting the Payment to HMRC == |
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| − | == | ||
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| − | == Paying | + | === Paying HMRC === |
| − | * Go to " | + | * Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". |
| − | * Enter the Bank Centre (Z992) | + | * Enter the Bank Centre (Z992) 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 date you are paying the money out. | ||
| − | * | + | * 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). |
| − | * | + | * Enter the comment e.g. {{DataValue|HMRC PAID M6}}. |
| − | * Press {{KeyPress| | + | * 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 " | + | * Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". |
| − | * Enter the Bank Centre (Z992) | + | * Enter the Bank Centre (Z992) 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 date you are paying the money out. | ||
| − | * | + | * Enter the relevant code to which you have been posting the payroll details 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). |
| − | * | + | * Enter the comment e.g. {{DataValue|STUDENT LN M6}}. |
| − | * Press {{KeyPress| | + | * Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal. |
= See Also = | = See Also = | ||
| Line 93: | Line 95: | ||
*[[Recommended Accounting Routines]] | *[[Recommended Accounting Routines]] | ||
| − | {{KB_Tags|wages, journal, HMRC}}{{KB_NL}} | + | {{KB_Tags|wages, journal, HMRC, gross, PAYE, national insurance}}{{KB_NL}}{{ZN_Accounts}} |
Revision as of 12:15, 29 December 2009
Contents
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 (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)
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" -> "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.
- Enter the Total Gross Pay for the appropriate centre as a positive value.
- Enter a comment e.g. 'Gross M6' and press <Enter>.
- 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.
- Enter the Total Tax for the period as a positive value.
- Enter a comment e.g. 'Tax M6'. Press <Enter>.
- Enter the PAYE & NI Control Account and post the Total Tax 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
- Enter the Wages Control Account centre.
- Enter the Total Employees' National Insurance for the period as a positive value.
- Enter a comment e.g. 'EE NI M6'. Press <Enter>.
- Enter the PAYE & NI Control Account and post the Total Employees' National Insurance as a negative value.
- Press <F6> on the Comment field to pick up the same comment as above. Press <Enter>.
Employers National Insurance
- Enter the Employers NI centre.
- Enter the Total Employer’s National Insurance for the period as a positive value.
- Enter a comment e.g. 'ER NI M6'. 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. Press <Enter>.
| Post any other values appropriately, 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
Paying the Wages
- Go to "Nominal Ledger" -> "Journal Entries" -> "Cashbook Entry".
- Enter the Bank Centre (Z992) and press <Enter>.
- Enter 'O' (Out) at "Money In/Out" as you are paying money out of the bank account. Press <Enter>.
- Enter the date you are paying the money out.
- Enter the Wages Control Centre.
- Enter the amount to pay (do not enter this as a negative value).
- Enter the comment e.g. 'WAGES PAID M6'.
- Press <Esc> and <Accept> to post the journal.
Posting the Payment to HMRC
Paying HMRC
- Go to "Nominal Ledger" -> "Journal Entries" -> "Cashbook Entry".
- Enter the Bank Centre (Z992) and press <Enter>.
- Enter 'O' (Out) at "Money In/Out" as you are paying money out of the bank account. Press <Enter>.
- Enter the date you are paying the money out.
- Enter the PAYE & NI Control Centre.
- Enter the amount to pay (do not enter this as a negative value).
- Enter the comment e.g. 'HMRC PAID M6'.
- 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) and press <Enter>.
- Enter 'O' (Out) at "Money In/Out" as you are paying money out of the bank account. Press <Enter>.
- Enter the date you are paying the money out.
- Enter the relevant code to which you have been posting the payroll details e.g. Student Loan Deductions.
- Enter the amount to pay (do not enter this as a negative value).
- Enter the comment e.g. 'STUDENT LN M6'.
- Press <Esc> and <Accept> to post the journal.
See Also
