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

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(→‎Posting Payroll Costs)
(→‎Gross Wages)
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=== Gross Wages ===
 
=== Gross Wages ===
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* 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.
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On a line on the list:
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* Enter the Total Gross Pay for the appropriate centre as a positive value.
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* 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.
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* Enter a comment.  
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* In the {{DataPrompt|Debit}} column, enter the Total Gross Pay for the appropriate centre.
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* In the {{DataPrompt|Comment}}, enter a comment.  
  
 
{{Example|text={{DataValue|Gross M6}}.}}
 
{{Example|text={{DataValue|Gross M6}}.}}
  
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* Press {{KeyPress|Enter}}.
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On the next line:
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* Enter the Wages Control Account centre and post the same Total Gross Pay again, but this time as a negative value.
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* In the {{DataPrompt|Centre}} column, enter the Wages Control Account centre and post the same Total Gross Pay again, but this time in the {{DataPrompt|Credit}} column.
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* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above and then press {{KeyPress|Enter}}.
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* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
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* Repeat as necessary if you are splitting Gross Wages into departments.
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Repeat as many times as necessary if you are splitting Gross Wages into departments.
  
 
=== Tax (PAYE) ===
 
=== Tax (PAYE) ===

Revision as of 16:49, 14 February 2014

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)
  • 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"

  • 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)

  • Enter the Wages Control Account centre.
  • Enter the Total Tax for the period as a positive value.
  • Enter a comment.
'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.
'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.
'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.
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.
  • Press <Esc> and <Accept> to post the journal.

Posting the Payment of the Wages

Paying the Wages

  • Go to " Accounts\Systems 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.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

Posting the Payment to HMRC

Paying HMRC

  • Go to " Accounts\Systems 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.
'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 " Accounts\Systems 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.
Student Loan Deductions.
  • Enter the amount to pay (do not enter this as a negative value).
  • Enter the comment.
'WAGES PAID 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
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