How do I deal with dividends in Platinum Payroll?

Summary

This article will explain how to deal with dividends in Payroll.

More Information

Dividends are a payment made by a corporation to its shareholders, usually as a distribution of "after tax" profits, and as such will be present on the company's Balance Sheet.

There are normally two stages to the paying of dividends, which is the declaration of payment to dividends and the actual payment. In most cases these are done at the same time and this is how it will be dealt with in Platinum.

In order to deal with dividends in Payroll, you will need to either, create a new Payroll Adjustment for dividends, (details can be found here) or you can use a post tax adjustment.

If you decided to create a new payroll adjustment for dividends you will need to follow the instructions on the link above and set the adjustment to be a 'Positive Adjustment', will not effect 'tax' and will not effect 'N.I.'.

If the amount of dividends being paid each period is the same amount you will need to go to: " Payroll Payroll Parameters/Maintenance Employee Amendments"

• On "Employee :" enter the employee 'number/code' and press <Enter>.
• Press <Page-Down> until you get to Template:Title page which should be page '6'.
• Against the "Dividends" Adjustment created previously enter the 'Nett amount' under the "Adjustment" column.
• Press <Esc> and click [Accept] to save the changes. Now each time you run a payroll period that this employee is in the amount will be automatically entered under "Dividends".

If the amount of dividends being paid each period varies you will need to go to: " Payroll Run Payroll Period".

• Select the "Pay Periods" and click [OK].
• For the employee, against the "Dividends" column enter the amount being paid as a Nett amount and close the period as normal.

Important:  The payments of dividends should not be included in the wages journal and if it has previously been entered to the wages control account it should be journaled out and into the dividends centre.

See Also

• How do I Post the Wages Journal?
• How do I Deal with Dividends in Accounts?
• How do I Set Up Payroll Adjustments?
• Getting Started - Payroll
• How do I Run a Payroll Period?
• How do I Close a Payroll Period?
• How do I Set up Payroll Attachments?

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Keywords AND Misspellings

Period, adjustments, payroll, Parameters