How do I post the wages journal?

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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)
  • Employers Pension Charges (Profit & Loss Indicator - Overhead)
  • Wages Control Account (Balance Sheet Indicator - Asset/Liability)
  • PAYE & NI Control Account (Balance Sheet Indicator - Asset/Liability)
  • Pension Control Account (Balance Sheet Indicator - Asset/Liability)
  • Employment Allowance (Profit & Loss Indicator - Overhead)

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 (P&L Overhead) 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.

Employees Pension Contributions

On a line on the list:

  • In the "Centre" column, enter the Wages Control centre.
  • In the "Debit" column, enter the Total Employee's Pension Contributions for the period.
  • In the "Comment", enter a comment.
'EE PENSION M6'.

On the next line:

  • In the "Centre" column, enter the Pension Control Account and post the Total Employee's Pension Contributions again in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.

Employers Pension Contributions

On a line on the list:

  • In the "Centre" column, enter the Pension Charges (P&L Overhead) centre.
  • In the "Debit" column, enter the Total Employer's Pension Contributions for the period.
  • In the "Comment", enter a comment.
'ER PENSION M6'.

On the next line:

  • In the "Centre" column, enter the Pension Control Account and post the Total Employer's Pension Contributions 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; Student Loan Deductions could debit Wages Control and credit Student Loan Control etc.
  • Press <Esc> and <Accept> to post the journal.

Example Journal

Please click here to download an example of a Payroll Analysis and the journal to post.

Employment Allowance

If you are entitled to employment allowance you will need to post an additional journal.

  • In the "Centre" column, enter the PAYE & NI Control Account centre.
  • In the "Debit" column, enter the Employment Allowance which has been deducted from this period's NI contributions for the period.
  • In the "Comment", enter a comment.
    		'EMP ALLOW M6'.

On the next line:

  • In the "Centre" column, enter the Employment Allowance (P&L Overhead) centre and post the value allowed again in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.

To check the value that has been allowed this period please view the Employer Payment Summary (EPS).

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. Pension 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.
'PENSIONS M6'.
  • Press <Esc> and <Accept> to post the journal.

See also


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Keywords AND Misspellings
wages, journal, hmrc, gross, paye, national insurance, pension, tax, nett, payroll
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