Difference between revisions of "How do I post the wages journal?"
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Tim Laundon (talk | contribs) |
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Go to "Nominal Ledger"->"Journal Entries"->"Multiple Entry" | Go to "Nominal Ledger"->"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 | + | *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. | ||
* The value should be the Total Gross Pay for the appropriate centre and is a positive value. | * 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 | + | * The comment should be the period e.g. M1 or WK1 and GROSS PAY and press {{KeyPress|enter}} |
| − | * | + | * Now 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 | + | * 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. | ||
* The value should be the Total PAYE for the period and is a positive value. | * 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. | + | * The comment should be the period e.g. M1 or WK1 and PAYE. Press {{KeyPress|enter}} |
| − | * Enter the PAYE & NI Control Account and post the Total PAYE again as a negative value. | + | * Enter the PAYE & NI Control Account and post the Total PAYE, 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=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 == | ||
| − | * | + | * 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 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. | + | * The comment should be the period e.g. M1 or WK1 and EE’S NI. Press {{KeyPress|enter}} |
* Enter the PAYE & NI Control Account and post the Total Employee’s National Insurance as a negative value. | * Enter the PAYE & NI Control Account and post the Total Employee’s 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 and then press {{KeyPress|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 {{KeyPress|enter}} | ||
| + | * 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 and then press {{KeyPress|enter}} | ||
| + | |||
| + | |||
| + | {{Note|text=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 {{KeyPress|escape}} and {{KeyPress|accept}} to post the journal. | ||
| + | |||
| + | |||
= Posting the payment of the Wages & PAYE & NI to the Inland Revenue = | = Posting the payment of the Wages & PAYE & NI to the Inland Revenue = | ||
Revision as of 10:36, 18 December 2009
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This article or section is under development. Be aware: Content will change as the document progresses. |
Contents
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 & 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.
- The Money In/Out flag should be set to “O” as you are paying money out of the bank account.
- Enter the date you are paying the money out
- The centre is 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.
Paying the Inland Revenue
- Go to "Nominal Ledger"->"Journal Entries"->"Cashbook Entry"
- Enter the Bank Centre (Z992) at the top of the screen.
- The Money In/Out flag should be set to “O” as you are paying money out of the bank account.
- Enter the date you are paying the money out
- The centre is 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
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.
- The Money In/Out flag should be set to “O” as you are paying money out of the bank account.
- 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
See Also
