Difference between revisions of "How do I post the wages journal?"
From Catalyst
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== More Information == | == 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 | + | * 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. | * 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. | * Third - to transfer the money out of the bank when you pay the Inland Revenue. | ||
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* Enter a comment e.g. {{DataValue|Gross M6}} and press {{KeyPress|Enter}}. | * 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. | * 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|Enter}}. | + | * Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above and then press {{KeyPress|Enter}}. |
| + | * Repeat as necessary if you are splitting Gross Wages into departments. | ||
=== Tax (PAYE) === | === Tax (PAYE) === | ||
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* Enter a comment e.g. {{DataValue|Tax M6}}. Press {{KeyPress|Enter}}. | * Enter a comment e.g. {{DataValue|Tax M6}}. Press {{KeyPress|Enter}}. | ||
* Enter the PAYE & NI Control Account and post the Total Tax as a negative value. | * 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|Enter}}. | + | * Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}. |
{{Note|text=This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.}} | {{Note|text=This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.}} | ||
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* Enter a comment e.g. {{DataValue|EE NI M6}}. Press {{KeyPress|Enter}}. | * Enter a comment e.g. {{DataValue|EE NI M6}}. Press {{KeyPress|Enter}}. | ||
* Enter the PAYE & NI Control Account and post the Total Employees' National Insurance as a negative value. | * 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|Enter}}. | + | * Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}. |
{{Note|text=This reduces the amount that you owe to the employees by the Employees National Insurance figure since you owe this to HMRC.}} | {{Note|text=This reduces the amount that you owe to the employees by the Employees National Insurance figure since you owe this to HMRC.}} | ||
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* Enter a comment e.g. {{DataValue|ER NI M6}}. Press {{KeyPress|Enter}}. | * 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|Enter}}. | + | * Press {{KeyPress|F6}} on the {{DataPrompt|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.}} | {{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.}} | ||
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=== Paying the Wages === | === Paying the Wages === | ||
* Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". | * Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". | ||
| − | * Enter | + | * Enter your Bank Centre 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 {{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. | ||
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=== Paying HMRC === | === Paying HMRC === | ||
* Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". | * Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". | ||
| − | * Enter | + | * Enter your Bank Centre 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 {{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. | ||
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== 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 "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". | * Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry". | ||
| − | * Enter | + | * Enter your Bank Centre 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 {{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. | ||
Revision as of 12:28, 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 (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.
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>.
- Repeat as necessary if you are splitting Gross Wages into departments.
Tax (PAYE)
- 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>.
 | This reduces the amount that you owe to the employees by the Tax figure since you owe this to 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>.
| 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
- 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 your Bank Centre 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 your Bank Centre 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 your Bank Centre 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
