Difference between revisions of "How do I post the wages journal?"
From Catalyst
Katy Kitchen (talk | contribs) |
Katy Kitchen (talk | contribs) |
||
| (10 intermediate revisions by 4 users not shown) | |||
| Line 1: | Line 1: | ||
| − | |||
== Summary == | == Summary == | ||
| − | The following article explains how to post a wages journal using [[Posting | + | 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 | + | * Gross Wages (Sales,W/S,Parts etc) (Profit & Loss Indicator - Overhead) |
| − | * Directors Remuneration (Profit & Loss Indicator | + | * Directors Remuneration (Profit & Loss Indicator - Overhead) |
| − | * Employers NI (Profit & Loss Indicator | + | * Employers NI (Profit & Loss Indicator - Overhead) |
| − | * Employers Pension Charges (Profit & Loss Indicator | + | * Employers Pension Charges (Profit & Loss Indicator - Overhead) |
| − | * Wages Control Account (Balance Sheet Indicator | + | * Wages Control Account (Balance Sheet Indicator - Asset/Liability) |
| − | * PAYE & NI Control Account (Balance Sheet Indicator | + | * PAYE & NI Control Account (Balance Sheet Indicator - Asset/Liability) |
* Pension Control Account (Balance Sheet Indicator - Asset/Liability) | * Pension Control Account (Balance Sheet Indicator - Asset/Liability) | ||
| − | * Employment Allowance (Profit & Loss Indicator | + | * Employment Allowance (Profit & Loss Indicator - Overhead) |
== More Information == | == More Information == | ||
| Line 25: | Line 24: | ||
* At {{DataPrompt|Date}}, enter a suitable date for the journal. | * At {{DataPrompt|Date}}, enter a suitable date for the journal. | ||
| − | {{Example|text=The date the wages were processed.}} | + | {{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. | ||
| Line 33: | Line 32: | ||
* 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. | * 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. | ||
* In the {{DataPrompt|Debit}} column, enter the Total Gross Pay for the appropriate centre. | * In the {{DataPrompt|Debit}} column, enter the Total Gross Pay for the appropriate centre. | ||
| − | * In the {{DataPrompt|Comment}}, enter a comment. | + | * In the {{DataPrompt|Comment}}, enter a comment. |
{{Example|text={{DataValue|Gross M6}}.}} | {{Example|text={{DataValue|Gross M6}}.}} | ||
| Line 71: | Line 70: | ||
On a line on the list: | On a line on the list: | ||
* In the {{DataPrompt|Centre}} column, enter the Employers NI (P&L Overhead) centre. | * In the {{DataPrompt|Centre}} column, enter the Employers NI (P&L Overhead) centre. | ||
| − | * In the {{DataPrompt|Debit}} column, enter the Total | + | * In the {{DataPrompt|Debit}} column, enter the Total Employer's National Insurance for the period. |
* In the {{DataPrompt|Comment}}, enter a comment. | * In the {{DataPrompt|Comment}}, enter a comment. | ||
{{Example|text={{DataValue|ER NI M6}}.}} | {{Example|text={{DataValue|ER NI M6}}.}} | ||
On the next line: | On the next line: | ||
| − | * In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Account and post the Total | + | * 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. | * Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. | ||
| Line 82: | Line 81: | ||
On a line on the list: | On a line on the list: | ||
* In the {{DataPrompt|Centre}} column, enter the Wages Control centre. | * In the {{DataPrompt|Centre}} column, enter the Wages Control centre. | ||
| − | * In the {{DataPrompt|Debit}} column, enter the Total | + | * In the {{DataPrompt|Debit}} column, enter the Total Employee's Pension Contributions for the period. |
* In the {{DataPrompt|Comment}}, enter a comment. | * In the {{DataPrompt|Comment}}, enter a comment. | ||
{{Example|text={{DataValue|EE PENSION M6}}.}} | {{Example|text={{DataValue|EE PENSION M6}}.}} | ||
On the next line: | On the next line: | ||
| − | * In the {{DataPrompt|Centre}} column, enter the Pension Control Account and post the Total | + | * In the {{DataPrompt|Centre}} column, enter the Pension Control Account and post the Total Employee's Pension Contributions again in the {{DataPrompt|Credit}} column. |
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. | * Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. | ||
| Line 93: | Line 92: | ||
On a line on the list: | On a line on the list: | ||
* In the {{DataPrompt|Centre}} column, enter the Pension Charges (P&L Overhead) centre. | * In the {{DataPrompt|Centre}} column, enter the Pension Charges (P&L Overhead) centre. | ||
| − | * In the {{DataPrompt|Debit}} column, enter the Total | + | * In the {{DataPrompt|Debit}} column, enter the Total Employer's Pension Contributions for the period. |
* In the {{DataPrompt|Comment}}, enter a comment. | * In the {{DataPrompt|Comment}}, enter a comment. | ||
{{Example|text={{DataValue|ER PENSION M6}}.}} | {{Example|text={{DataValue|ER PENSION M6}}.}} | ||
On the next line: | On the next line: | ||
| − | * In the {{DataPrompt|Centre}} column, enter the Pension Control Account and post the Total | + | * 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|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. | * Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. | ||
| Line 105: | Line 104: | ||
{{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.}} | {{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| | + | * Press {{KeyPress|ESC}} and {{KeyPress|Accept}} to post the journal. |
==== Example Journal ==== | ==== Example Journal ==== | ||
| − | Please click [[Media:Example.pdf|here]] to download an example of a Payroll Analysis and the journal to post. | + | {{Information|text=Please click [[Media:Example.pdf|here]] to download an example of a Payroll Analysis and the journal to post.}} |
=== Employment Allowance === | === Employment Allowance === | ||
| − | If you are entitled to [[How do I | + | 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|Centre}} column, enter the PAYE & NI Control Account centre. | ||
| Line 121: | Line 120: | ||
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. | * 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 | + | 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 === | ||
| Line 136: | Line 135: | ||
{{Example|text={{DataValue|WAGES PAID M6}}.}} | {{Example|text={{DataValue|WAGES PAID M6}}.}} | ||
| − | * Press {{KeyPress| | + | * Press {{KeyPress|ESC}} and {{KeyPress|Accept}} to post the journal. |
=== Posting the Payment to HMRC === | === Posting the Payment to HMRC === | ||
| Line 152: | Line 151: | ||
{{Example|text={{DataValue|WAGES PAID M6}}.}} | {{Example|text={{DataValue|WAGES PAID M6}}.}} | ||
| − | * Press {{KeyPress| | + | * Press {{KeyPress|ESC}} and {{KeyPress|Accept}} to post the journal. |
=== Paying Money to Other Bodies === | === Paying Money to Other Bodies === | ||
| Line 168: | Line 167: | ||
{{Example|text={{DataValue|PENSIONS M6}}.}} | {{Example|text={{DataValue|PENSIONS M6}}.}} | ||
| − | * Press {{KeyPress| | + | * Press {{KeyPress|ESC}} and {{KeyPress|Accept}} to post the journal. |
== See also == | == See also == | ||
| − | * [[How do I | + | * [[How do I run a payroll period?]] |
| − | * [[Posting | + | * [[Posting journals]] |
| − | * [[Posting | + | * [[Posting cashbook entries]] |
| − | * [[What is a | + | * [[What is a nominal code?]] |
| − | * [[Recommended | + | * [[How do I journal a Covid19 grant?]] |
| + | * [[Recommended accounting routines]] | ||
| − | {{KB_Tags|wages, journal, | + | {{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
Contents
- 1 Summary
- 2 More Information
- 2.1 Posting Payroll Costs
- 2.2 Gross Wages
- 2.3 Tax (PAYE)
- 2.4 Employees National Insurance
- 2.5 Employers National Insurance
- 2.6 Employees Pension Contributions
- 2.7 Employers Pension Contributions
- 2.8 Employment Allowance
- 2.9 Posting the Payment of the Wages
- 2.10 Posting the Payment to HMRC
- 2.11 Paying Money to Other Bodies
- 3 See also
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
- How do I run a payroll period?
- Posting journals
- Posting cashbook entries
- What is a nominal code?
- How do I journal a Covid19 grant?
- Recommended accounting routines
