My accountant believes in need to show my wages as a gross figure and not as a net figure after the employee's NI contibution has been taken away. At the moment my wages are shown as "Employee Costs" and not wages and the employee's NI contribution which is part of the wages is mixed up in the NI PAYE account. Can help?
Hi Frank,
Just in case you haven't seen it, here is our help page on recording PAYE income tax and national insurance:
http://www.solaraccounts.co.uk/help/how-to-record-paye-and-ni-contributions.php
It records gross wages plus employer's national insurance contributions under the 'Employee Costs' account. (Note that the PAYE income tax and employee's national insurance contributions aren't usually recorded as a business expenses because they these costs are incurred by the employee, not the business).
If you want to show the Gross Wages separately from the Employer's National Insurance contributions, you will need to create new expense accounts and allocate to them when you record the payment to the employee. I have attached an example derived from the help topic example.
I hope this answers your question. Please let me know if you need more information.
Regards,
