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 " Accounts\Systems Nominal Ledger Journal Entries Multiple Entry."
- 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
- 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.
- 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.
- 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.
- 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.
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.
- 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.
- 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 " 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.
- Enter the amount to pay (do not enter this as a negative value).
- Enter the comment.
- Press <Esc> and <Accept> to post the journal.
See also
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'No'Keywords AND Misspellings
wages, journal, HMRC, gross, PAYE, national insurance
