How do I post the wages journal?
From Catalyst
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 (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)
On a line on the list:
- In the "Centre" column, enter the Wages Control Account centre.
- In the "Debit" column, enter the Total Tax for the period.
- In the "Comment", enter a comment.
| 'Tax M6'. |
On the next line:
- In the "Centre" column, enter the PAYE & NI Control Account and post the Total Tax in the "Credit" column.
- Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
 | This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC. |
Employees National Insurance
On a line on the list:
- In the "Centre" column, enter the Wages Control Account centre.
- In the "Debit" column, enter the Total Employees' National Insurance for the period.
- In the "Comment", enter a comment.
| 'EE NI M6'. |
On the next line:
- In the "Centre" column, enter the PAYE & NI Control Account and post the Total Employees' National Insurance in the "Credit" column.
- Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
| 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
On a line on the list:
- In the "Centre" column, enter the Employers NI centre.
- In the "Debit" column, enter the Total Employer’s National Insurance for the period.
- In the "Comment", enter a comment.
| 'ER NI M6'. |
On the next line:
- In the "Centre" column, enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again in the "Credit" column.
- Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
| Post any other values appropriately. |
| Tax Credits should be posted in the "Debit" column to the PAYE & NI Control Account and in the "Credit" column 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 " Nominal Ledger Journal Entries"
- At "Entry mode", choose 'Cashbook'.
- At "Money in/out", choose 'out' as you are paying money out of the bank account.
- On the highlighted line, enter your Bank Centre.
- On the next line:
- In the "Centre" column, enter the Wages Control Centre.
- In the "Date" column, enter the date you are paying the money out.
- In the "Debit" column, enter the amount to pay.
- In the "Comment", enter a comment.
| 'WAGES PAID M6'. |
- Press <Esc> and <Accept> to post the journal.
Posting the Payment to HMRC
Paying HMRC
- Go to " Nominal Ledger Journal Entries"
- At "Entry mode", choose 'Cashbook'.
- At "Money in/out", choose 'out' as you are paying money out of the bank account.
- On the highlighted line, enter your Bank Centre.
- On the next line:
- In the "Centre" column, enter the PAYE & NI Control Centre.
- In the "Date" column, enter the date you are paying the money out.
- In the "Debit" column, enter the amount to pay.
- In the "Comment", enter a 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 " Nominal Ledger Journal Entries"
- At "Entry mode", choose 'Cashbook'.
- At "Money in/out", choose 'out' as you are paying money out of the bank account.
- On the highlighted line, enter your Bank Centre.
- On the next line:
- In the "Centre" column, enter the relevant code to which you have been posting the payroll details e.g. Student Loan Deductions.
- In the "Date" column, enter the date you are paying the money out.
- In the "Debit" column, enter the amount to pay.
- In the "Comment", enter a comment.
| 'WAGES PAID M6'. |
- Press <Esc> and <Accept> to post the journal.
See also
- How do I Run a Payroll Period?
- Posting Journals
- Posting Cashbook entries
- What is a Nominal Code?
- Recommended Accounting Routines
