Payroll bookkeeping

Question asked by Tony Blake 7 years ago

Another query on the booking of payroll!

It is now possible to allocate a project to each individual on the payroll system - very useful feature. However, I see that the amount booked to Salaries is the net pay only. The PAYE, NICs and pension contributions remain in 'No project'. Is this because I have done something wrong or is it a fault in the system?

Apart from the unconvential net pay method of booking salary costs (which Paul Scholes has justifiably criticised in an earlier post) the result outlined above really negates the benefit of allocating a project to each employee. What can be done?

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3 Replies

Hi Tony,

There won't be any immediate changes on this, however I have logged it with our development team for future consideration.

Best answer
7 years ago

I think it would be best to revamp the way payroll is imported into accounts, as suggested by Paul. The 'traditional journal entry for payroll is:
Debit Gross pay, employer's NIC, employers pension contributions Credit Control accounts for net pay, HMRC and pension company

In Clearbooks the credit part of that is to create supplier invoices, which is OK, but it's the debit part which is untidy and not user friendly (I have had clients complain about this). All three of the debit lines need to be assigned by project.

Is it possible to make that change?

7 years ago

Hi Tony,

Unfortunately, it's not possible in its current implementation to assign a project, as the bill to HMRC is a combination of all employee tax contributions. If there are multiple projects for each employee it would not be possible to split this out.

Would you prefer an option to select a project for the HMRC bill or just a revamp of the way Payroll is imported as per Paul's critique?

7 years ago

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