How do I post the wages journal?

Summary

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

• Gross Wages (P/L Centre – B: Overhead)
• Directors Remuneration (P/L Centre – B: Overhead)
• Employers NI (P/L Centre – B Overhead)
• Wages Control Account (Balance Sheet Centre – B: Asset/Liability)
• Paye & NI Control Account (Balance Sheet Centre – B: 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. Also ensure the entries are posted 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. This amount is what it has cost the company.
• The comment should be the period e.g. M1 or WK1 and GROSS PAY.
• Enter the Wages Control Account centre and post the same Total Gross Pay again as a negative value.
• Press <F6> on the Comment field to pick up the same comment as above.

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.
• 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.
• The above processes 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.
• 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.
• Enter the PAYE & NI Control Account and post the Total Employee’s National Insurance again as a

negative value.

• Press <F6> on the Comment field to pick up the same comment as above.

See Also

• Posting Journals
• Posting Cashbook entries
• [[

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Keywords AND Misspellings

wages, journal, HMRC