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

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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 (Purchase Ledger Indicator – Overhead)
+
* Gross Wages (Profit & Loss Indicator – Overhead)
* Directors Remuneration (Purchase Ledger Indicator – Overhead)
+
* Directors Remuneration (Profit & Loss Indicator – Overhead)
* Employers NI (Purchase Ledger Indicator – Overhead)
+
* Employers NI (Profit & Loss 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)
 
* PAYE & NI Control Account (Balance Sheet Indicator – Asset/Liability)

Revision as of 12:16, 29 December 2009

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 (Profit & Loss Indicator – Overhead)
  • Directors Remuneration (Profit & Loss Indicator – Overhead)
  • Employers NI (Profit & Loss 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


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Keywords AND Misspellings
wages, journal, HMRC, gross, PAYE, national insurance