How do I post the wages journal?
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Contents
Summary
The following article explains how to post the wages journal via journal entries. You should have the following Nominal Centres, or similar setup within Platinum:
- Gross Wages (P/L Centre – B: Overhead)
- Directors Remuneration (P/L Centre – B: Overhead)
- Employers NI (P/L Centre – B Overhead)
- Wages Control Account (Balance Sheet Centre – B: Asset/Liability)
- Paye & NI Control Account (Balance Sheet Centre – B: Asset/Liability)
In Detail
There are three journals to carry out when dealing with wages. One to post the payroll information e.g. the Gross NI & PAYE values owed, one to transfer the money out of the bank account when you actually pay the employees and a third to transfer the money out of the bank when you pay the Inland Revenue.
Posting Payroll Information
Go to "Nominal Ledger"->"Journal Entries"->"Multiple Entry"
- Enter a suitable date for the journal e.g. the date the wages were processed. Follow the steps below. Also ensure the entries are posted on the same journal.
Post the 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.
- The value should be the Total Gross Pay for the appropriate centre and is a positive value. This amount is what it has cost the company.
- The comment should be the period e.g. M1 or WK1 and GROSS PAY.
- Enter the Wages Control Account centre and post the same Total Gross Pay again as a negative value.
- Press <F6> on the Comment field to pick up the same comment as above.
Post the Tax
- Enter the Wages Control Account centre.
- The value should be the Total PAYE for the period and is a positive value.
- The comment should be the period e.g. M1 or WK1 and PAYE.
- Enter the PAYE & NI Control Account and post the Total PAYE again as a negative value.
- Press <F6> on the Comment field to pick up the same comment as above.
- The above processes has the effect of reducing the amount that you owe the employees and showing the Tax figure as an amount you owe HMRC.
Employees National Insurance
- Enter the Wages Control Account centre.
- The value should be the Total Employee’s National Insurance for the period and is a positive value.
- The comment should be the period e.g. M1 or WK1 and EE’S NI.
- Enter the PAYE & NI Control Account and post the Total Employee’s National Insurance again as a
negative value.
- Press <F6> on the Comment field to pick up the same comment as above.
See Also
