Hi
I know that a journal entry to carried out under general transaction , Can you help me understand how to post this journal entry for wages
Gross wages 4589dr
Employers NI 202dr
PAYE 402cr
NI 367cr
Voluntary deductions 25cr
Net wages payable 3997cr
I cant seem to get postings right in solar - can you help
Thanks
Pamela
Hi Pamela,
You can enter it as a general transaction, but we normally advise it be entered as a Money Paid Out transaction because it keeps a record of the payee - see this page for details:
http://www.solaraccounts.co.uk/help/how-to-record-paye-and-ni-contributions.php
In your case you will also need to create a new 'Voluntary Deductions Liability' account and include it in the table in the Money Paid Out window. Your Money Paid Out window would then look like this:
Amount Paid: £3,795.00
Allocate To Account:
Employee Costs £4,791.00
Income Tax and NI Liability: -£971.00
Voluntary Deductions Liability: -£25.00
(The 'Amount Paid' figure above is different to your 'Net wages payable' figure because it doesn't include Employers NI).
At a later date you will also need to record:
1. A Money Paid Out transaction from the Cheque Account to the Income Tax and NI Liability account when you pay the PAYE/NI you have collected to HMRC.
2. A Money Paid Out transaction from the Cheque Account to the Voluntary Deductions Liability account when you pay the deductions you have collected to the relevant authority.
Regards,
