How do I deal with dividends in Platinum Payroll?
Summary
This article will explain how to deal with dividends in Payroll.
More Information
Dividends may be paid along with a shareholder's wages as one payment for convenience. In order to deal with dividends in Payroll, you will need either to 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', which will not affect 'Tax' and will not affect 'N.I.'.
Set Dividend Amount
If the dividends being paid each period are a fixed amount, you will need to go to: " Payroll Maintenance Options Add or Edit Employees".
- On "Employee:" enter the employee 'number/code' and press <Enter>.
- Press <Page-Down> until you get to the Adjustments page which should be page '6'.
- Against the "Dividends" Adjustment created previously enter the 'Nett amount' of the payment under the "Adjustment" column.
- Press <Esc> and click [Accept] to save the changes. Now each time you run a Payroll Period for this employee, the amount will appear automatically under "Dividends".
Varied Dividend Amount
If the dividends being paid each period vary, you will need to go to: " Payroll Run Payroll Period".
- Select the "Pay Periods" and click [OK].
- For the relevant employee in the "Dividends" column, enter the nett amount of the dividend.
In both instances, you will then need to close the period as normal.
 | The dividends could be included in the wages journal but if it has previously been entered to the wages control account, it should be journalled 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?
- How do I run a payroll period?
- How do I close a payroll period?
- How do I set up payroll attachments?
