Salaries
Question asked by Rona Metters 7 years ago
Hi I do my day to day accounting in Clearbooks but my payroll in another package, how do I account for my salary payments in Clearbooks, is it a journal? thanks
Hi Rona
The above only works if there's no PAYE.
If there is PAYE then it's more usual to prepare a journal the basic of which would be to debit "Salaries", with the gross pay, and "Employer's NIC" with that bit of the NI contributions. You then credit two "other creditors" accounts; "PAYE" with the total owed to HMRC and "Net pay" with the net paid to employees.
Payments from the bank to HMRC and employees are then put to these two creditors accounts.
If you are the sole employee director, you can use the Director's loan account instead of a net pay account.
Best answer
Hi Rona,
To account for salaries, you should create a bill to the relevant employee where you can code it to Salaries.
Thanks,
Tommy
Hi Rona
The above only works if there's no PAYE.
If there is PAYE then it's more usual to prepare a journal the basic of which would be to debit "Salaries", with the gross pay, and "Employer's NIC" with that bit of the NI contributions. You then credit two "other creditors" accounts; "PAYE" with the total owed to HMRC and "Net pay" with the net paid to employees.
Payments from the bank to HMRC and employees are then put to these two creditors accounts.
If you are the sole employee director, you can use the Director's loan account instead of a net pay account.
Best answerThanks so much Paul! that was really helpful along with another of your answers about loan accounts. Fab thanks!
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